Cover
Cover | 12 Months Ended |
Dec. 31, 2021shares | |
Entity Addresses [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Document Period End Date | Dec. 31, 2021 |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2021 |
Current Fiscal Year End Date | --12-31 |
Entity File Number | 001-39570 |
Entity Registrant Name | TIM S.A. |
Entity Central Index Key | 0001826168 |
Entity Incorporation, State or Country Code | D5 |
Entity Address, Address Line One | João Cabral de Melo Neto Avenue, 850 – South Tower – 12th floor |
Entity Address, City or Town | Rio de Janeiro |
Entity Address, Country | BR |
Entity Address, Postal Zip Code | 22775-057 |
Title of 12(b) Security | American Depositary Shares |
Trading Symbol | TIMB |
Security Exchange Name | NYSE |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Emerging Growth Company | false |
Document Accounting Standard | International Financial Reporting Standards |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 2,420,804,398 |
ICFR Auditor Attestation Flag | true |
Auditor Firm ID | 1448 |
Auditor Name | Ernst & Young Auditores Independentes S.S. |
Auditor Location | Rio de Janeiro, Brazil |
Business Contact [Member] | |
Entity Addresses [Line Items] | |
Entity Address, Address Line One | João Cabral de Melo Neto Avenue, 850 – South Tower – 12th floor |
Entity Address, City or Town | Rio de Janeiro |
Entity Address, Country | BR |
Entity Address, Postal Zip Code | 22775-057 |
City Area Code | 55 |
Local Phone Number | 4109-4167 |
Contact Personnel Name | Camille Loyo Faria |
BALANCE SHEETS
BALANCE SHEETS - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Statement of financial position [abstract] | ||
Assets | R$ 49819186 | R$ 41654417 |
Current assets | 15,398,048 | 10,411,556 |
Cash and cash equivalents | 5,228,615 | 2,575,291 |
Marketable securities | 4,568,020 | 2,070,438 |
Trade accounts receivable | 3,066,906 | 3,051,834 |
Inventories | 202,553 | 246,602 |
Recoverable indirect taxes, charges and contributions | 354,620 | 374,015 |
Recoverable direct taxes, charges and contributions | 1,311,906 | 1,421,112 |
Prepaid expenses | 275,148 | 149,796 |
Derivative financial instruments | 134,292 | 262,666 |
Leases | 30,076 | 5,357 |
Other amounts recoverable | 28,661 | 43,906 |
Other assets | 197,251 | 210,539 |
Non-current assets | 34,421,138 | 31,242,861 |
Marketable securities | 11,508 | 7,061 |
Trade accounts receivable | 186,301 | 128,827 |
Recoverable indirect taxes, charges and contributions | 905,312 | 856,786 |
Recoverable direct taxes, charges and contributions | 730,455 | 1,277,127 |
Deferred income tax and social contribution | 536,888 | 550,646 |
Judicial deposits | 718,773 | 794,755 |
Prepaid expenses | 83,139 | 73,598 |
Derivative financial instruments | 521,627 | 239,423 |
Leases | 213,045 | 156,841 |
Other assets | 18,908 | 30,024 |
Investment in an associate | 1,601,703 | |
Property, plant and equipment | 18,308,400 | 18,100,698 |
Intangible assets | 10,585,079 | 9,027,075 |
Total liabilities and shareholders' equity | 49,819,186 | 41,654,417 |
Total liabilities | 24,712,080 | 18,471,672 |
Current liabilities | 10,611,482 | 8,301,956 |
Suppliers | 3,267,404 | 3,128,732 |
Loans and financing | 538,450 | 1,689,385 |
Lease liabilities | 1,269,878 | 1,054,709 |
Derivative financial instruments | 194,837 | 7,273 |
Payroll and related charges | 303,239 | 272,635 |
Indirect taxes, charges and contributions payable | 1,418,682 | 935,778 |
Direct taxes, charges and contributions payable | 245,113 | 296,299 |
Dividends and interest on shareholders' equity payable | 533,580 | 538,576 |
Authorizations payable | 2,630,169 | 102,507 |
Deferred revenues | 197,179 | 266,436 |
Other liabilities | 12,951 | 9,626 |
Non-current liabilities | 14,100,598 | 10,169,716 |
Loans and financing | 3,307,015 | 655,647 |
Derivative financial instruments | 13,950 | 28,893 |
Lease liabilities | 7,793,661 | 7,324,126 |
Indirect taxes, charges and contributions payable | 3,273 | 3,102 |
Direct taxes, charges and contributions payable | 13,227 | 212,444 |
Provision for legal and administrative proceedings | 960,881 | 886,947 |
Pension plans and other post-employment benefits | 6,492 | 7,346 |
Authorizations payable | 1,250,918 | 232,940 |
Deferred revenues | 689,161 | 755,488 |
Other liabilities | 62,020 | 62,783 |
Shareholders' equity | 25,107,106 | 23,182,745 |
Share capital | 13,477,891 | 13,477,891 |
Capital reserves | 401,806 | 397,183 |
Profit reserves | 11,236,551 | 9,317,356 |
Other comprehensive income | (4,285) | (4,848) |
Treasury shares | R$ 4857 | R$ 4837 |
STATEMENTS OF INCOME
STATEMENTS OF INCOME R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2021BRL (R$) | Dec. 31, 2020BRL (R$) | Dec. 31, 2019BRL (R$) | |
Profit or loss [abstract] | |||
Revenue | R$ 18058027 | R$ 17267812 | R$ 17377194 |
Costs of services provided and goods sold | (8,443,023) | (7,996,615) | (7,433,731) |
Gross income | 9,615,004 | 9,271,197 | 9,943,463 |
Operating income (expenses) | |||
Selling expenses | (4,621,788) | (4,443,027) | (4,986,289) |
General and administrative expenses | (1,723,384) | (1,673,290) | (1,717,859) |
Share of loss of an associate | (11,572) | ||
Other income (expenses), net | 497,771 | (351,854) | 1,275,542 |
Total operating expenses | (5,858,973) | (6,468,171) | (5,428,606) |
Profit before financial income and expenses | 3,756,031 | 2,803,026 | 4,514,857 |
Financial income | 1,091,748 | 438,598 | 1,430,171 |
Financial expenses | (1,745,213) | (1,242,255) | (1,408,053) |
Foreign exchange variations, net | 659 | (6,965) | (908) |
Total financial income(expenses) | (652,806) | (810,622) | 21,210 |
Profit before income tax and social contribution | 3,103,225 | 1,992,404 | 4,536,067 |
Income tax and social contribution | (146,051) | (164,150) | (913,940) |
Profit for the year | R$ 2957174 | R$ 1828254 | R$ 3622127 |
STATEMENTS OF COMPREHENSIVE INC
STATEMENTS OF COMPREHENSIVE INCOME - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Profit or loss [abstract] | |||
Profit for the year | R$ 2957174 | R$ 1828254 | R$ 3622127 |
Item that will not be reclassified to profit or loss in subsequent periods: | |||
Pension plans and other post-employment benefits | 853 | (1,562) | (2,932) |
Deferred taxes | (290) | 531 | 997 |
Total comprehensive income for the year, net of tax | R$ 2957737 | R$ 1827223 | R$ 3620192 |
STATEMENT OF CHANGES IN SHAREHO
STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY - BRL (R$) R$ in Thousands | Issued capital [member] | Capital reserve [member] | Other reserves [member] | Reserve For Expansion [Member] | Tax Bbenefit Reserve [Member] | Treasury shares [member] | Equity Valuation Adjustment [Member] | Retained earnings [member] | Total | Accumulated other comprehensive income [member] |
Balances as at January 01, 2019 at Dec. 31, 2018 | R$ 9866298 | R$ 412091 | R$ 838692 | R$ 7267574 | R$ 1417858 | R$ 8523 | R$ 19794837 | R$ 847 | ||
Total comprehensive income for the year | ||||||||||
Profit for the year | 3,622,127 | 3,622,127 | ||||||||
Remeasurement of post-employment benefit obligation | (1,935) | (1,935) | ||||||||
Total comprehensive income for the year | 3,622,127 | 3,620,192 | (1,935) | |||||||
Total contributions from shareholders and distributions to shareholders | ||||||||||
Long-term incentive plan (note 26) | (1,441) | (1,441) | ||||||||
Purchases of treasury shares, net of disposals | 5,319 | 5,319 | ||||||||
Allocation of profit for the year: | ||||||||||
Legal Reserve (note 25) | 171,398 | (171,398) | ||||||||
Interest on shareholders’ equity (note 25) | 995,438 | 995,438 | ||||||||
Tax benefit reserve (note 25) | 194,161 | (194,161) | ||||||||
Reserve for expansion (note 25) | 2,261,130 | (2,261,130) | ||||||||
Total contributions from shareholders and distributions to shareholders | (1,441) | 171,398 | 2,269,479 | 194,161 | 5,319 | (3,622,127) | (983,211) | |||
Interest on shareholders’ equity (note 25) | (995,438) | (995,438) | ||||||||
Unclaimed dividends (note 25) | 8,349 | 8,349 | ||||||||
Balances as at December 31, 2019 at Dec. 31, 2019 | 9,866,298 | 410,650 | 1,010,090 | 9,537,053 | 1,612,019 | (3,204) | 22,431,818 | (1,088) | ||
Total comprehensive income for the year | ||||||||||
Profit for the year | 1,828,254 | 1,828,254 | ||||||||
Remeasurement of post-employment benefit obligation | (1,031) | (1,031) | ||||||||
Total comprehensive income for the year | 1,828,254 | 1,827,223 | (1,031) | |||||||
Total contributions from shareholders and distributions to shareholders | ||||||||||
Long-term incentive plan (note 26) | 7,425 | 7,425 | ||||||||
Purchases of treasury shares, net of disposals | (7,089) | (7,089) | ||||||||
Allocation of profit for the year: | ||||||||||
Legal Reserve (note 25) | 83,708 | (83,708) | ||||||||
Interest on shareholders’ equity (note 25) | 1,083,000 | 1,083,000 | ||||||||
Tax benefit reserve (note 25) | 169,541 | (169,541) | ||||||||
Reserve for expansion (note 25) | 492,005 | (492,005) | ||||||||
Total contributions from shareholders and distributions to shareholders | 3,611,593 | (13,467) | 26,104 | (3,037,451) | 169,541 | (1,633) | (1,828,254) | (1,076,296) | (2,729) | |
Corporate restructure (note 1) | 3,611,593 | (20,892) | (57,604) | (3,535,824) | 5,456 | (2,729) | ||||
Interest on shareholders’ equity (note 25) | (1,083,000) | (1,083,000) | ||||||||
Unclaimed dividends (note 25) | 6,368 | 6,368 | ||||||||
Balances as at December 31, 2019 at Dec. 31, 2020 | 13,477,891 | 397,183 | 1,036,194 | 6,499,602 | 1,781,560 | (4,837) | R$ 4848 | 23,182,745 | R$ 4848 | |
Total comprehensive income for the year | ||||||||||
Profit for the year | 2,957,174 | 2,957,174 | ||||||||
Remeasurement of post-employment benefit obligation | 563 | 563 | ||||||||
Total comprehensive income for the year | 563 | 2,957,174 | 2,957,737 | |||||||
Total contributions from shareholders and distributions to shareholders | ||||||||||
Long-term incentive plan (note 26) | 4,623 | 4,623 | ||||||||
Purchases of treasury shares, net of disposals | (20) | (20) | ||||||||
Allocation of profit for the year: | ||||||||||
Legal Reserve (note 25) | 139,021 | (139,021) | ||||||||
Interest on shareholders’ equity (note 25) | (1,047,500) | (1,047,500) | ||||||||
Tax benefit reserve (note 25) | 176,741 | (176,741) | ||||||||
Reserve for expansion (note 25) | 1,593,912 | (1,593,912) | ||||||||
Unclaimed dividends (note 25) | 9,521 | 9,521 | ||||||||
Total contributions from shareholders and distributions to shareholders | 4,623 | 139,021 | 1,603,433 | 176,741 | (20) | (2,957,174) | (1,033,376) | |||
Interest on shareholders’ equity (note 25) | 1,047,500 | 1,047,500 | ||||||||
Balances as at December 31, 2019 at Dec. 31, 2021 | R$ 13477891 | R$ 401806 | R$ 1175215 | R$ 8103035 | R$ 1958301 | R$ 4857 | R$ 4285 | R$ 25107106 |
STATEMENT OF CASH FLOW
STATEMENT OF CASH FLOW - BRL (R$) R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Operating activities | ||||
Profit before income tax and social contribution | R$ 3103225 | R$ 1992404 | R$ 4536067 | |
Adjustments to reconcile profit before income tax and social contribution to net cash generated by operating activities: | ||||
Depreciation and amortization | 5,691,696 | 5,527,012 | 5,128,981 | |
Share of loss of an associate | 11,572 | |||
Residual value of property, plant and equipment and intangible written-off | 51,913 | (88,085) | 32,411 | |
Gain on sale of 51% of I-Systems (formerly FiberCo) (note 1) | (782,237) | |||
Interest on asset retirement obligation | 1,486 | (284) | 226 | |
Provision for legal and administrative proceedings | 278,789 | 333,724 | 547,691 | |
Inflation adjustment on judicial deposits and legal and administrative proceedings | (27,768) | 138,109 | 200,469 | |
Interest, monetary and foreign exchange variations on loans and other financial adjustments | 119,864 | 168,362 | (950,675) | |
Interest on lease liabilities | 858,259 | 910,691 | 821,463 | |
Interest on lease receivable | 56 | (10,698) | (6,422) | |
Provision for expected credit losses | 544,642 | 552,817 | 748,291 | |
Long-term incentive plans | 15,672 | 2,588 | 3,443 | |
Total adjustments to reconcile income with net cash from operations | 9,867,169 | 9,526,640 | 11,061,945 | |
Decrease (increase) in operating assets | ||||
Trade accounts receivable | (583,346) | (390,087) | (1,027,131) | |
Recoverable taxes, charges and contributions | 664,397 | 1,260,949 | (1,601,276) | |
Inventories | 44,050 | (43,325) | (20,219) | |
Prepaid expenses | (134,893) | 20,928 | 100,917 | |
Judicial deposits | 215,698 | 203,567 | 296,486 | |
Other assets | 41,610 | (111,003) | 5,059 | |
Increase (decrease) in operating liabilities | ||||
Payroll and related charges | 35,506 | 53,667 | 6,736 | |
Suppliers | 153,357 | (818,989) | (401,200) | |
Taxes, charges and contributions payable | 366,605 | (320,674) | 40,045 | |
Authorizations payable | (8,604) | (10,871) | (100,182) | |
Payments for legal and administrative proceedings | (316,804) | (413,635) | (715,203) | |
Deferred revenues | (135,583) | (87,188) | (204,355) | |
Other liabilities | (116,981) | (126,530) | (215,063) | |
Cash generated by operations | 10,092,181 | 8,743,449 | 7,226,559 | |
Income tax and social contribution paid | (14,094) | (69,578) | (161,833) | |
Net cash flows from operating activities | 10,078,087 | 8,673,871 | 7,064,726 | |
Investing activities | ||||
Marketable securities | (2,502,030) | (1,428,888) | 131,742 | |
Cash from the sale of 51% of I-Systems (formerly FiberCo) (note 1) | 1,096,294 | |||
Cash from the merger of TIM Participações | 21,959 | |||
Additions to property, plant and equipment and intangible assets | [1] | (5,283,707) | (3,891,306) | (3,853,484) |
Other derivatives | (161,429) | |||
Proceeds received fromleases | 47 | 4,879 | 9,100 | |
Net cash flows used in investing activities | (6,689,396) | (5,454,785) | (3,712,642) | |
Financing activities | ||||
New loans | 3,062,000 | 1,800,000 | 1,000,000 | |
Amortization of loans | (1,710,935) | (1,806,922) | (723,500) | |
Interest paid on loans | 78,952 | 72,643 | 96,649 | |
Lease payments | (1,179,723) | (927,903) | (800,621) | |
Interest paid on lease liabilities | (832,928) | (794,391) | (785,091) | |
Proceeds from financing for the 5G license acquisition | 843,020 | |||
Derivative financial instruments | 216,197 | 27,070 | 32,761 | |
Purchase of treasury shares, net of disposals | (11,069) | 435 | ||
Dividends and interest on shareholders’ equity paid | (1,042,976) | (1,153,054) | (770,139) | |
Net cash flows used in financing activities | (735,366) | (2,927,843) | (2,142,804) | |
Increase in cash and cash equivalents | 2,653,325 | 291,243 | 1,209,280 | |
Cash and cash equivalents at the beginning of the year | 2,575,290 | 2,284,048 | 1,075,530 | |
Cash and cash equivalents at the end of the year | R$ 5228615 | R$ 2575291 | R$ 2284810 | |
[1] | For the effects of the 5G acquisition with no cash impact, see note 40. |
Operations
Operations | 12 Months Ended |
Dec. 31, 2021 | |
Operations | |
Operations | 1. Operations Corporate structure TIM S.A. (“TIM” “Company” and/or “TIM Group”) is a public limited company with Registered office in the city of Rio de Janeiro, RJ, and a subsidiary of TIM Brasil Serviços e Participações S.A. (“TIM Brasil”). TIM Brasil is a subsidiary of the Telecom Italia Group that held 66.59 66.58 The Company provides Landline Switched Telephone Service (”STFC“) in Local, National Long-Distance and International Long-Distance modes, as well as Personal Mobile Service (”SMP“) and Multimedia Communication Service (”SCM"), in all Brazilian states and in the Federal District. The Company's shares are traded on B3 (formerly BM&F/Bovespa). Additionally, TIM S.A. has American Depositary Receipts ( ADRs Securities and Exchange Commission In December 2020, TIM’s Board of Directors, after analyzing the studies prepared and the non-binding proposals received, approved, in a meeting held on December 10, 2020, the incorporation of FiberCo Soluções de Infraestrutura Ltda., as preparation for future segregation of assets and provision of infrastructure services for residential fiber optic of TIM S.A. On May 5, 2021, TIM S.A. informed its shareholders and the market in general that, at a meeting of the Company’s Board of Directors held on the same day, an agreement between TIM S.A. and IHS Fiber Brasil - Cessão de Infraestruturas Ltda. (“IHS”) was approved for the acquisition, by IHS, of an equity interest in FiberCo Soluções de Infraestrutura S.A. (“FiberCo”). The process for acquisition of equity interest at FiberCo, later named I–Systems, by IHS was completed on November 16, 2021. As a result, IHS currently holds 51 49 The details of the sale of FiberCo’s equity interest are described below. Corporate Reorganization Sale of 51% of I-Systems (formerly FiberCo) to IHS On May 5, 2021, the Company disclosed the decision of its Board of Directors on the sale by TIM of 51 49 FiberCo was established by the Company to segregate network assets and provide infrastructure services. FiberCo was born to implement, operate and maintain last-mile infrastructure for broadband access to be offered in the wholesale market. Nevertheless, the terms of the agreement define TIM as current main customer, having the prerogative of 6 months of exclusivity after entering new areas. In November 2021, as a result of the spin-off of net assets from the broadband business and with the subsequent disposal of 51 1,612,957 49 Currently, due to the closing of the transaction, TIM S.A. wrote-off about 90 1,051,477 According to the valuation report of the net assets and liabilities, the calculated amount of R$ 1,211,789 The process of selling the 51 582,498 1,096,294 1,678,792 3,291,749 Upon closing, the interest in the investee was recorded at fair value as provided for by IFRS 10, and evaluated by the equity method subsequently, as defined in IAS 28. As provided for in IFRS 10, the sale of an investment with loss of control must be recognized by the total write-off of the investment and recognition of part of the associated company’s investment at fair value. The effects of the transaction are detailed below: Description 12/31/2021 Transaction price 1,096,294 Investment registration at fair value 1,612,957 Cost of assets Derecognition of the assets and liabilities of the subsidiary (1,211,472) Write-off of goodwill (1,051,477) Write-off of deferred tax on goodwill amortized 335,935 Gain on transaction 782,237 Income tax and social contribution (509,245) Net gain on transaction 272,992 Gain before income tax and social contribution on remeasurement of investment at fair value 668,720 Gain before income tax and social contribution on asset disposal 113,517 Merger of TIM Participações by TIM S.A. On July 29, 2020, the Board of Directors of the Company approved the submission to the Extraordinary General Meeting of the proposed merger of TIM Participações by TIM S.A. The Extraordinary General Meeting was held on August 31, 2020, and approved, by a majority of votes, the incorporation of TIM Participações by TIM S. A, in accordance with the protocol and justification of Incorporation concluded between the administrations of the Companies on July 29, 2020. As a result the Company’s Management proceeded with the merger on August 31, 2020, based on the net book assets of TIM Participações, in the amount of R$ 355,323. The changes in TIM Participações’s equity between the date of the report (March 31, 2020) and the merger (August 31, 2020) were transferred, absorbed and incorporated into the operating income of TIM Participações S.A. (incorporated), as set forth in the protocol of incorporation. As a result of the merger, all operations of TIM Participações were transferred to TIM S.A., which succeeded it in all its assets, rights and obligations, universally and for all purposes of law. This transaction had no economic or tax impact and the incorporated goodwill will not be used for the purposes of any tax offsets. This corporate reorganization aimed to provide greater efficiency and simplification of the organizational structure of the TIM Group, making the structure of internal controls more efficient. In addition, the corporate reorganization provides a better tax efficiency in future distributions of Interest on Shareholders’ Equity, and also, greater integration of administrative and financial unities allowing a cut-off in operational costs and expenses, as well as improvement of synergies, which shall result in a more efficient operation. As a result from this transaction, there was no impact on the controlling and non-controlling shareholders. After the merger, TIM S.A. started to be traded with the codes TIMS3 on B3 and TIMB on the NYSE. |
Management statement and basis
Management statement and basis of preparation of the financial statements | 12 Months Ended |
Dec. 31, 2021 | |
Management Statement And Basis Of Preparation Of Financial Statements | |
Management statement and basis of preparation of the financial statements | 2. Management statement and basis of preparation of the financial statements The financial statements have been prepared in accordance with the International Financial Reporting Standards (“IFRS”) issued by the International Accounting Standards Board (“IASB”), and disclose all (and only) the applicable significant information related to the financial statements, which is consistent with the information utilized by management in the performance of its duties. The significant accounting policies applied to the preparation of this financial statements are described below and/or presented in the respective notes. These policies were consistently applied to the years presented, unless otherwise indicated. a. Basis of presentation of Company’s consolidated financial statements – Predecessor method As previously described with completion of the merger, TIM S.A. became the surviving entity, and the new SEC registrant. Further, since the merger effective date, TIM S.A. shares replaced TIM Participações S.A. shares and are currently listed in the Brazilian Stock Exchange (“B3”) as well as in the New York Stock Exchange (“NYSE”). Upon the completion of the Corporate restructure, the historical consolidated financial statements of TIM Participações S.A. became the historical consolidated financial statements of TIM S.A. The transaction was recorded at book value since it was a transaction under common control. The consolidated financial statements for the prior periods are presented for TIM Participações S.A. as the predecessor of the Company as the historical operations of TIM Participações S.A. are deemed to be those of the Company. The related consolidated statements of income, comprehensive income, changes in shareholders’ equity and cash flows for the year ended December 31, 2019 are those of TIM Participações. The number of shares of TIM S.A. prior to the Corporate reorganization was 2,420,447,019 The impact of the reverse merger of TIM Participações by TIM S.A. was limited to reclassifications among certain accounts within the current year statement of changes in shareholders’ equity as follows: Equity accounts The Company’s equity reserves Impact on TIM S.A. statement of changes in equity TIM Participações Share capital 13,477,891 3,611,593 9,866,298 Capital reserve 397,183 (20,892) 418,075 Legal reserve 1,036,194 (57,603) 1,093,797 Tax benefit reserve 1,781,560 - 1,781,560 Reserve for expansion 6,499,602 (3,535,824) 10,035,426 Treasury shares (4,837) 5,456 (10,293) Other comprehensive income (4,848) (2,730) (2,118) Total 23,182,745 - 23,182,745 b. General criteria for preparation and disclosure The financial statements were prepared taking into account the historical cost as the base value as well as financial assets and liabilities (including derivative financial instruments) measured at fair value. Assets and liabilities are reported according to their degree of liquidity and collectability. They are reported as current when they are likely to be realized or settled over the next 12 months. Otherwise, they are recorded as non-current. The exception to this procedure involves deferred income tax and social contribution balances (assets and liabilities) and contingent liabilities that are fully classified as long-term. Interests paid are classified as financing cash flow in the statement of cash flows as it represents costs of obtaining financial resources. c. Functional currency and presentation currency The presentation currency of the financial statements is the Real (R$), which is also the Company´s functional currency. Foreign currency transactions are recognized at the exchange rate on the date of the transaction. Monetary items in foreign currency are converted into reais at the exchange rate on the balance sheet date, informed by Banco Central do Brasil d. Segment information Operating segments are components of the entity that carry out business activities from which revenues can be obtained and expenses incurred. Its operating results are regularly reviewed by the entity's main operations manager, who makes decisions on resource allocation and evaluates segment performance. For the segment to exist, individualized financial information is required. The main operational decision maker in the Company, responsible for the allocation of resources and periodically evaluating performance, is the Executive Board, which, along with the Board of Directors, are responsible for making the strategic decisions of the company and its management. The Group's strategy is focused on optimizing results, and from the corporate reorganization mentioned in note 1, all the operating activities of the group are concentrated exclusively in TIM S.A.. Although there are diverse activities, decision makers understand that the company represents only one business segment and do not contemplate specific strategies focused only on one service line. All decisions regarding strategic, financial planning, purchases, investments and investment of resources are made on a consolidated basis. The aim is to maximize the consolidated result obtained by operating the SMP, STFC and SCM licenses. e. Consolidation procedures Subsidiaries are all the entities in which the Group retains control. The Group controls an entity when it is exposed to, or has a right over the variable returns arising from its involvement with the entity and has the ability to interfere in those returns due to its power over the entity. The subsidiaries are fully consolidated as of the date control is transferred to the Group. Consolidation is interrupted beginning as of the date in which the Group no longer holds control. The purchase accounting method is used to record the acquisition of subsidiaries by the Group. The acquisition cost is measured as the fair value of the assets acquired, equity instruments (i.e.: shares) and liabilities incurred or assumed by the acquirer on the date of the change of control. Identifiable assets acquired, contingencies and liabilities assumed in a business combination are initially measured at fair value on the date of acquisition, regardless of the proportion of any minority interest. The portion exceeding the acquisition cost of the Group's interest in the acquired identifiable net assets, is recorded as goodwill. Should the acquisition cost be less than the fair value of the net assets of the acquired subsidiary, the difference is recognized directly in the statement of income as a revenue once concepts and calculations applied are reviewed. Intercompany transactions, as well as the balances and unrealized gains and losses in those transactions, are eliminated. The base date of the financial information used for consolidation purposes is the same for all the companies in the Group. As of December 31, 2020, the Company only had one subsidiary named I-Systems (formerly FiberCo). The consolidated financial statements as of December 31, 2021 is not being presented since I-Systems had been sold before December 31, 2021, as described in Note 1. The Company had 51% of its equity interest on the investee sold to IHS, and TIM S.A. now holds a non-controlling minority interest of 49%. At that moment, TIM S.A. started having I-Systems as an affiliated company and to record the income (loss) of this company under the equity method, no longer consolidating it. That said, the balances of December 31, 2021 are not comparable to the same of December 31, 2020. f. Approval of financial statements These financial statements were approved by the Board of Directors of the Company on April 14, 2022. g. New standards, amendments and interpretations of standards The following new standards/amendments were issued by the International Accounting Standards Board (IASB), are effective for the year ended December 31, 2021. · Amendments to IFRS 16, IFRS 4, IFRS 7 and IFRS 9: Benchmark Interest Rate Reform The amendments to Pronouncements IAS 39 and IFRS 9 provide for temporary exceptions that address the financial statement effects when a rate of interbank deposit certificate is replaced with an alternative to an almost risk-free rate. The amendments include the following practical expedients: · A practical expedient that requires contractual changes, or changes in cash flows which are directly required by the reform, to be treated as changes in a floating interest rate, equivalent to a change in a market rate; · A practical expedient that allows changes required by the reform, to be carried out in hedge designation and documentation and hedge relationship will not be discontinued. · A practical expedient that provides a temporary exception to entities so they will comply with the separately identifiable requirement when a risk-free rate instrument is designated as a hedge risk component. These changes have not impacted the individual and consolidated financial statements of the Group. If they become applicable, the group intends to use the practical expedients in future periods. · IFRS 16 COVID-19 related benefits granted to leaseholders in lease agreements that go beyond June 30, 2021. The amendments provide for the granting of benefits to lessees upon adoption of the guidelines of IFRS 16 on the modification of the lease agreement, when accounting for the related benefits as a direct consequence of the Covid-19 pandemic. As a practical expedient, a lessee may choose not to assess whether a benefit related to Covid-19 granted by the lessor is a modification of the lease agreement. The lessee who makes this option must account for any change in the lease payment resulting from the benefit granted in the lease agreement related to Covid-19 in the same way that it would account for the change by adopting IFRS 16 if the change was not a modification of the lease agreement. The amendment was intended to be applied until June 30, 2021, but as the impact of COVID-19 pandemic may continue, on March 31, 2021, the IASB extended the application period of this practical expedient to June 30, 2022. This amendment becomes effective for the fiscal years beginning on or after January 1, 2021. However, the Group has not yet received COVID-19 benefits granted to lessees, but the application of practical expedient is planned to be applied once it is available within the standard period. The following new standards were issued by the International Accounting Standards Board (IASB), but are not effective for the year ended December 31, 2021. · IFRS 17 - Insurance Contracts In May 2017, the IASB issued IFRS 17 - Insurance Contracts, a new comprehensive accounting standard for insurance contracts that includes recognition and measurement, presentation and disclosure. As soon as it comes into force, IFRS 17 will replace IFRS 4 - Insurance Contracts, issued in 2005. IFRS 17 applies to all types of insurance contracts (such as life, non-life, direct insurance and reinsurance), regardless of the type of entity that issues them, as well as certain guarantees and financial instruments with discretionary participation characteristics. Some scope exceptions apply. The overall objective of IFRS 17 is to provide an accounting model for insurance contracts that is more useful and consistent for insurers. In contrast to the requirements of IFRS 4, which are largely based on local accounting policies in force in previous periods, IFRS 17 provides for a comprehensive model for insurance contracts, covering all relevant accounting aspects. The focus of IFRS 17 is the general model, covering the following: • A specific adaptation for contracts with direct participation characteristics (variable rate approach). • A simplified approach (premium allocation approach), mainly for short-term contracts. IFRS 17 is effective for periods beginning on or after January 1, 2023, requiring the presentation of comparative amounts. Early adoption is allowed if the entity also adopts IFRS 9 and IFRS 15 on the same date or before the first-time adoption of IFRS 17. This standard does not apply to the Company. · Amendments to IAS 1: Classification of liabilities as current or non-current In January 2020, the IASB issued amendments to paragraphs 69 to 76 of IAS 1, aiming to specify the requirements for classifying the liabilities as current or non-current. The amendments clarify the following: • What a right to postpone settlement means; • That the right to postpone settlement must exist on the base date of the report; • That this classification is not affected by the likelihood that an entity will exercise its right to postpone settlement; • That only if a derivative embedded in a convertible liability is itself an equity instrument would the terms of a liability not affect its classification. Amendments are valid for periods started on January 1, 2023 and must be applied on a retrospective basis. The Company currently assesses the impact that the changes will have on current practice and whether existing loan agreements may require renegotiation. · Amendments to IAS 8: Definition of accounting estimates In February 2021, IASB issued amendments to IAS 8, in which the definition of ‘accounting estimates’ is introduced. The amendments clarify the difference between changes in accounting estimates and changes in accounting policies and correction of errors. Additionally, they clarify how entities use measurement and input techniques to develop accounting estimates. The amendments will become effective for periods beginning on or after January 1, 2023 and will be applied to changes in accounting policies and estimates that occur on or after the beginning of that period. If disclosed, early adoption is allowed. Amendments are not expected to have a significant impact on the Group’s financial statements. · Amendments to IAS 1 and IFRS Practice Statement 2: Disclosure of accounting policies In February 2021, IASB issued amendments to IAS 1 and IFRS Practice Statement 2 Making Materiality Judgments, in which guides and examples are provided to help entities to apply materiality judgment to the disclosure of accounting policies. The aim of amendments is to assist entities in the disclosure of accounting policies that are most useful by replacing the requirement for disclosure of significant accounting policies to material accounting policies and adding guides about how entities should apply the concept of materiality to make decisions about the disclosure of accounting policies. The amendments to IAS 1 are applicable for periods started as of or after January 1, 2023, with early adoption allowed. Since the amendments to Practice Statement 2 provide non-mandatory guides about the application of material definition to the accounting policy information, an adoption date is not required for this amendment. The Group is currently evaluating the impacts of these amendments to the accounting policies disclosed. COVID-19 impacts Since March 2020, a pandemic was declared by the World Health Organization due to the outbreak of the new Coronavirus (COVID-19). The main impacts and first cases were recorded in Brazil and in the world also in the first quarter of 2020. The outbreak of COVID-19 developed rapidly in 2020 and continues until 2021. The measures taken to contain the virus greatly affected economic activity, including some impacts on the operating results and cash flows of the Companies in Brazil. Throughout 2020, lockdowns were decreed in several states in Brazil, lasting from March to June 2020. In 2020, the Company has a robust infrastructure and is part of an extremely important segment in this period of crisis, essential for the population, government and health system. After an internal analysis, there was no indication of impairment of assets or risks associated with the fulfillment of obligations since the Company is not highly leveraged and still has credit lines available to be used in the event of a significant reduction in cash volume. In 2021, the crisis worsened with an increase in the number of cases. Consequently, there was a need for new restrictive measures, including the closing of the trade, impacting the operation of stores again; however, the restrictions’ period was shorter in relation to 2020, thus, reducing the impact of closing of stores. Said restrictions were implemented mainly in the month of March in different cities in Brazil. In September 2021, the country showed a significant evolution in vaccination levels, with a reduction in the transmission rate and number of cases. Thus, there was a slight improvement in economic activities. In June, the stores returned with activities with a positive impact on device sales. We are in the 2nd year of the pandemic and there is no impact on the Company’s financial statements. |
Estimates and areas where judgm
Estimates and areas where judgment is significant in the application of the Company's accounting policies | 12 Months Ended |
Dec. 31, 2021 | |
Estimates and areas where judgment is significant in the application of the Company's accounting policies | 3. Estimates and areas where judgment is significant in the application of the Company's accounting policies Accounting estimates and judgments are continuously assessed. They are based on the Company's historical experience and on other factors, such as expectations of future events, considering the circumstances present on the base date of financial statements. By definition, the resulting accounting estimates will rarely be the same as the actual results. The estimates and assumptions that present a significant risk, with the probability of causing a material adjustment to the book values of assets and liabilities for the fiscal period, are covered below. (a) Impairment loss on non-financial assets and investments in associated companies Impairment losses occur when book value of an asset or cash generating unit exceeds its recoverable value, which is the highest of fair value less selling costs and value in use. Calculation of fair value less selling costs is based on information available on similar assets’ selling transactions or market prices less additional costs to dispose of the asset. The calculation of value in use is based on the discounted cash flow model. Any reorganization activities with which the Company is not committed to on the reporting date of the Presentation of financial statements or significant future investments that could improve the asset base of the cash generating unit under test are excluded for impairment The main non-financial assets for which this assessment was made are goodwill recorded by the Company (note 15) and its tangible and intangible assets. Net investments in associated companies are valued after applying the equity method to determine whether there is any objective evidence of impairment. The recoverable amount of an investment in an associated company must be determined for each investment, unless the associated company does not generate cash inflows on an ongoing basis that are largely independent of those generated by the entity’s other assets. The investment in an associated company was valued as described in Note 13. (b) Income tax and social contribution (current and deferred) Income tax and social contribution (current and deferred) are calculated according to interpretations of current legislation and IAS 12. This process typically involves complex estimates to determine taxable income and temporary differences. In particular, the deferred assets on tax losses, negative basis of social contribution and temporary differences is recognized in proportion to the probability that future taxable income is available and can be used. The measurement of the recoverability of deferred income tax on tax losses, negative basis of social contribution and temporary differences takes the history of taxable income into account, as well as the estimate of future taxable income (note 10). (c) Provision for legal and administrative proceedings The legal and administrative proceedings are analyzed by the Management along with its legal advisors (internal and external). The Company considers factors in its analysis such as hierarchy of laws, precedents available, recent court judgments, their relevance in the legal system and payment history. These assessments involve Management’s judgment (note 24). (d) Fair value of derivatives and other financial instruments The financial instruments presented in the balance sheet at fair value are measured using valuation techniques that consider observable data or observable data derived from market (note 37). (e) Unbilled revenues Since some cut dates for billing occur at intermediate dates within the months of the year, as the end of each month there are revenues earned by the Company, but not actually invoiced to its customers. These unbilled revenues are recorded based on estimate that takes into consideration historical consumption data, number of days elapsed since the last billing date, among others (note 27). (f) Leases The Company has a significant number of the lease contracts in which it acts a lessee (note 16), and with the adoption of the accounting standard IFRS 16 – Leases, on 01/01/2019, certain judgments were exercised by Company’s management in measuring lease liabilities and right-of-use assets, such as: (i) estimate of the lease term, considering non-cancellable period and the period covered by options to extend the contract term, when the exercise depends only from the Company, and this exercise is reasonably certain; and (ii) using certain assumptions to calculate the discount rate. The company is not able to readily determine the interest rate implicit on the lease and, therefore, considers its incremental rate on loans to measure lease liabilities. Incremental rate on the lessee’s loan is the interest rate that the lessee would have to pay when borrowing, for a similar term and with a similar guarantee, the resources necessary to obtain the asset with a value similar to the right of use asset in a similar economic environment. The company estimates the incremental rate using observable data (such as market interest rates) when available and considers aspects that are specific to the Company (such as the cost of debt) in this estimate. |
Cash and cash equivalents
Cash and cash equivalents | 12 Months Ended |
Dec. 31, 2021 | |
Cash and cash equivalents | 4. Cash and cash equivalents These are financial assets measured at amortized cost through the effective interest rate method. Schedule of financial assets The Company’s Management determines the classification of its financial assets upon initial recognition. 2021 2020 Cash and banks 99,821 100,009 Unrestrictedly available financial investments investments: Bank Deposit Certificates (CDB)/Repurchase and resale agreements 5,128,794 2,475,282 Total cash and cash equivalents 5,228,615 2,575,291 Bank certificates of deposit (“CDBs”) and committed transactions are nominative securities issued by banks and sold to the public as a form of fund raising. Such securities may be traded during the contracted term, at any time, without significant loss in their value and are used for the fulfilment of short-term obligations by the company. The annual average return of the Company's investments related to CDBs and Committed Operations is 101.57 101.24 |
Marketable securities
Marketable securities | 12 Months Ended |
Dec. 31, 2021 | |
Marketable Securities | |
Marketable securities | 5. Marketable securities Comprise financial assets measured at fair value through profit or loss. Schedule of marketable securities 2021 2020 FUNCINE (i) 11,508 7,061 Fundo Soberano (ii) 9,624 5,220 FIC: (iii) Government bonds (iv) 2,975,613 1,345,797 CDB (v) 40,496 17,370 Financial bills (vi) 703,118 292,500 Other (vii) 839,169 409,551 4,579,528 2,077,499 Current portion (4,568,020) (2,070,438) Non-current portion 11,508 7,061 (i) As of December 2017, the Company, with the aim of using tax deductibility benefit for income tax and social contribution purposes, started investing in the National Film Industry Financing Fund (FUNCINE). The average remuneration in 2021 is - 0.06 % p.a. (- 3.34 % p.a. on December 31, 2020). ( ii) Fundo Soberano is composed only of federal government bonds. The average remuneration in 2021 is 95.13 % ( 87.71 % on December 31, 2020) of the variation of the interbank deposit certificate – CDI. (iii) In August 2017, the Company invested in open FIC's (Quota Investment Fund). Funds are mostly made up of federal government bonds and papers from top-tier financial institutions. The average remuneration in 2021 of the FICs was 122.76 % ( 112.72 % on December 31, 2020) of the variation of the Interbank Deposit Certificate – CDI. (iv) Government bonds are fixed income financial instruments issued by the National Treasury to finance the activities of the Federal Government. (v) The CDB operations are emitted by the banks with the commitment of stock buyback by the bank itself and with predetermined taxes. (vi) The Financial bills is a fix income tittle emitted by financial institutions with the objective of a long-term fund raising (vii) Is represented by: Debentures, FIDC, commercial notes, promissory notes, bank credit note. |
Trade accounts receivable
Trade accounts receivable | 12 Months Ended |
Dec. 31, 2021 | |
Trade accounts receivable | 90 680,525 641,644 " id="sjs-B3" xml:space="preserve">6. Trade accounts receivable These are financial assets measured at amortized cost, and refer to accounts receivable from users of telecommunications services, from network use (interconnection) and from sales of handsets and accessories. Accounts receivable are recorded at the price charged at the time of the transaction. The balances of accounts receivable also include services provided and not billed (“unbilled”) up to the balance sheet date. Accounts receivable from clients are initially recognized at fair value and subsequently measured at amortized cost using the effective interest rate method less the provision for expected credit losses ("impairment"). The provision for expected credit losses was recognized as a reduction in accounts receivable based on the profile of the subscriber portfolio, the aging of overdue accounts receivable, the economic situation, the risks involved in each case and the collection curve, at an amount deemed sufficient by Management, as adjusted to reflect current and prospective information on macroeconomic factors that affect the customers’ ability to settle the receivables. The fair value of trade accounts receivable is close to the book value recorded on December 31, 2021 and December 31, 2020. Schedule of trade account receivables The average rate considered in calculating the present value of accounts receivable recorded in the long term is 0.19 0.22 2021 2020 Trade accounts receivable 3,253,207 3,180,661 Gross accounts receivables 4,000,026 3,831,921 Billed services 2,107,682 2,039,403 Unbilled services 849,762 817,669 Network use (interconnexion) 504,333 399,083 Goods sold 521,362 552,962 Contractual assets (note 23) 15,340 14,914 Other accounts receivable 1,547 7,890 Provision for expected credit losses (746,819) (651,260) Current portion (3,066,906) (3,051,834) Non-current portion 186,301 128,827 Schedule of changes in the allowance for doubtful accounts The movement of the provision for loss on expected settlement credits, accounted for as an asset reduction account, was as follows: 2021 2020 Opening balance 651,260 774,077 Supplement to expected losses 544,642 552,817 Write-off of provision (449,083) (675,634) Closing Balance 746,819 651,260 Schedule of aging of accounts receivable The aging of accounts receivable is as follows: 2021 2020 Total 4,000,026 3,831,921 Undue 2,895,999 2,785,469 Overdue up to (days): 30 246,195 248,955 60 100,027 84,218 90 77,280 71,635 >90 680,525 641,644 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2021 | |
Inventories | 7. Inventories Schedule of inventory Inventories are presented at the average acquisition cost. A loss is recognized to adjust the cost of Handsets and accessories to the net realizable value (selling price) when this value is less than the average acquisition cost. 2021 2020 Inventories 202,553 246,602 Inventories 214,605 257,477 Mobile handsets and tablets 140,934 186,961 Accessories and prepaid cards 53,791 55,558 TIM chips 19,880 14,958 Losses on adjustment to realizable amount (12,052) (10,875) |
Recoverable indirect taxes, cha
Recoverable indirect taxes, charges and contributions | 12 Months Ended |
Dec. 31, 2021 | |
Recoverable Indirect Taxes Charges And Contributions | |
Recoverable indirect taxes, charges and contributions | 8. Recoverable indirect taxes, charges and contributions Schedule of recoverable indirect taxes, fees and contributions 2021 2020 Recoverable indirect taxes, fees and contributions 1,259,932 1,230,801 ICMS 1,216,912 1,188,018 Other 43,020 42,783 Current portion (354,620) (374,015) Non-current portion 905,312 856,786 The amounts of recoverable ICMS (state VAT) are mainly comprised by: (i) credits on the acquisition of property, plant and equipment directly related to the provision of telecommunication services (credits divided over 48 months). (ii) ICMS amounts paid under the tax substitution regime from goods acquired for resale, mainly mobile handsets, chips, tablets and modems sold by TIM. (iii) ICMS credits from the final and unappealable decision in May 2021 for a lawsuit involving the repetition of prepaid telephone services in Santa Catarina, in the amount of R$52 million. |
Recoverable direct taxes, charg
Recoverable direct taxes, charges and contributions | 12 Months Ended |
Dec. 31, 2021 | |
Recoverable Direct Taxes Charges And Contributions | |
Recoverable direct taxes, charges and contributions | 9. Recoverable direct taxes, charges and contributions Schedule of direct taxes, fees and contributions recoverable 2021 2020 Recoverable direct taxes, charges and contributions 2,042,361 2,698,239 Income tax (IR) and social contribution (CS) (i) 807,096 381,905 PIS / COFINS (ii) 1,164,772 2,253,545 Other 70,493 62,789 Current portion (1,311,906) (1,421,112) Non-current portion 730,455 1,277,127 (i) Income tax and social contribution amounts are mainly related to other income tax and social contribution credits from previous years, whose current estimated term for use is later than 12 months. In September 2021, the Federal Supreme Court (STF), with general repercussions, established an understanding for the non-levy of Corporate Income Tax (IRPJ) and Social Contribution (CSLL) on the monetary restatement using the SELIC rate in cases of undue payment. Although the aforementioned decision is still pending publication, as well as the specific TIM lawsuit is still pending judgment, TIM recorded its best estimate to date, in the amount of R$ 547 (ii) The Recoverable PIS/COFINS amounts mainly refer to credits from a legal proceeding filed by TIM Celular S.A. (ultimately merged into TIM S.A., as well as TIM S.A. itself), with a favorable final decision in Higher Courts which discussed the exclusion of the ICMS from the PIS and COFINS calculation bases. According to the Company’s internal assessment, we expect to use these credits by the 2nd quarter of 2022. In March 2017, the Federal Supreme Court (“STF”) recognized the unconstitutionality of including ICMS amounts in the calculation base of PIS and COFINS contributions. TIM S.A. (previously named “Intelig Telecomunicações Ltda.”), as the surviving company from the merger of TIM Celular S.A. and other entities existing in the Group in the past, which had filed proceedings of the same nature, has been challenging this issue in court since 2006, with effects retroactive to five years, as permitted by the legislation. The total amount recorded in 2019 related to these credits was R$ 3,023 1,795 1,228 The amount recorded are updated monthly at the interest rate equivalent to the reference rate of the Special Settlement and Custody System (Selic), available on the website of the Brazilian Federal Revenue. In 2020, TIM had utilized credits arising from the process of exclusion of ICMS from the calculation bases of PIS and COFINS, for payments of federal taxes, in the total amount of R$ 1,516 957 In May 2021, the Brazilian Supreme Court (STF) ended the discussion regarding the credit rights of the companies, defining in the judgment of Motions for Clarification that the exclusion of ICMS from the PIS and COFINS calculation basis is valid as of March 15, 2017, when the general repercussion thesis (Topic 69) was established, in the judgment of Special Appeal (RE) No. 574706. Considering that the judges ratified that the ICMS not included in the PIS/COFINS calculation basis is highlighted in the invoice, we confirm that the procedures adopted by TIM S.A., when providing for PIS/COFINS credits, are adequate. |
Deferred income tax and social
Deferred income tax and social contribution | 12 Months Ended |
Dec. 31, 2021 | |
Deferred Income Tax And Social Contribution | |
Deferred income tax and social contribution | 10. Deferred income tax and social contribution Deferred income tax and social contribution are recognized regarding the (1) accumulated tax losses and negative bases of social contribution and (2) temporary differences arising from differences between the tax basis of assets and liabilities and their book values in the financial statements. Deferred income tax is determined using the tax rates (and tax laws) enacted, or substantially enacted, up to the balance sheet date. Subsequent changes in tax rates or tax legislation may modify the deferred tax credit and debit balances. Deferred tax assets on income tax and social contribution are recognized only in the event of a profitable track record and/or when the annual forecasts prepared by the Company, examined by the Tax Council and Statutory Audit Committee and approved by other Management bodies, indicate the likelihood of the future realization of those tax credits. The balances of deferred income tax assets and liabilities are presented at net value in balance sheet when there is the legal right and the intention of offsetting them upon calculation of current taxes, in general related to the same legal entity and the same tax authority. Thus, deferred tax assets and liabilities belonging to different entities are in general shown separately, not at their net amounts. On December 31, 2021 and 2020, the rates in force were 25 9 30 Schedule of deferred taxes assets and liabilities The amounts recorded are as follows: 2021 2020 Tax loss and negative basis of social contribution 219,876 475,128 Temporary differences: Provision for legal and administrative proceedings 330,627 303,948 Losses on doubtful accounts receivable 257,529 224,459 Adjustments to present value – 3G license 3,298 5,240 Lease of LT Amazonas infrastructure 32,377 29,971 Employee profit sharing 40,177 36,915 Taxes with enforceability suspended (i) 437,950 258,246 Amortized Goodwill – TIM Fiber (ii) (34,560) (370,494) Derivative financial instruments (143,948) (154,718) Capitalized interest on 4G authorization (233,433) (262,608) Deemed costs – TIM S.A (42,617) (53,792) Adjustments to lease agreements 369,521 303,833 Accelerated depreciation (iii) (466,863) (266,464) Fair value adjustment I–Systems (former FiberCo) (iv) (249,477) - Other 16,431 20,982 Total deferred taxes - Assets 536,888 550,646 Deferred active tax portion 536,888 550,646 (i) Mainly represented by the Fistel fee for the financial years 2020 and 2021. The Operating Inspection Fee (TFF) for the years 2020 and 2021 had its payments suspended by virtue of an injunction and, therefore, still do not have a specific date for payment. See note 21 for details. (ii) Represented by the goodwill on the business combination of companies TIM Fiber RJ and SP acquired by TIM in 2012, partially realized in November 2021 once this transaction is completed. (iii) As of the 1Q20, TIM S.A. excludes the portion of acceleration of depreciation of movable assets belonging to property, plant and equipment from the calculation basis of the IRPJ and CSLL, due to their uninterrupted use in three operating shifts, supported by technical expert report, as provided for in Article 323 of the RIR/2018, or by the adequacy to the tax depreciation provided for in IN 1700/2017. Such tax adjustment generated a deferred liability of R$ 467 million until December 31, 2021 (R$ 266.5 million up to December 31, 2020) and applied as of January 1, 2020. (iv) Refers to deferred charges on the fair value of the non-majority interest calculated in the sale transaction described in Note 1 that took place in November 2021 between TIM S.A. and IHS Fiber Brasil - Cessão de Infraestruturas Ltda. Expectation of recovery of tax credits The estimates of recoverability of tax credits were calculated taking into consideration financial and business assumptions available on December 31, 2021. Schedule of expectations to recover the credits Based on these projections, the company has the following expectation of recovery of credits: Deferred income tax and social contribution Tax losses and negative basis 2022 103,847 2023 79,581 2024 36,448 2025 - Total 219,876 The company based on a history of profitability and based on projections of future taxable results, constitutes deferred income tax credits and social contribution on all of its tax losses, negative social contribution basis and temporary differences. The Company used credits from tax losses and the negative basis of social contribution in the amount of R$ 255,252 325,583 |
Prepaid expenses
Prepaid expenses | 12 Months Ended |
Dec. 31, 2021 | |
Prepaid Expenses | |
Prepaid expenses | 11. Prepaid expenses Schedule of prepaid expenses 2021 2020 358,287 223,394 Advertisements not released (i) 86,154 1,679 Rentals and insurance 67,034 69,208 Incremental costs for obtaining contracts with customers (ii) 153,988 125,114 IT Services (iii) 28,626 10,535 Other 22,485 16,858 Current portion (275,148) (149,796) Non-current portion 83,139 73,598 (i) Represent prepaid payments of advertising expenses for products and services of the TIM brand that are recognized in the result according to the period of serving the advertisement. (ii) It is substantially represented by incremental costs related to sales commissions paid to partners for obtaining customer contracts arising from the adoption of IFRS 15, which are deferred to the result in accordance with the term of the contract and/or economic benefit, usually from 1 to 2 years. (iii) They represent prepayments of IT services expenses for network migration of information to the “cloud.” |
Judicial deposits
Judicial deposits | 12 Months Ended |
Dec. 31, 2021 | |
Judicial Deposits | |
Judicial deposits | 12. Judicial deposits Schedule of detailed information about judicial deposits They are recorded at historical cost and updated according to current legislation: 2021 2020 718,773 794,755 Civil 285,583 315,312 Labor 128,607 149,390 Tax 178,914 181,670 Regulatory 111 111 Online attachment (i) 125,558 148,272 (i) Refer to legal blockages directly in the company's current accounts and financial investments linked to certain legal proceedings. This amount is periodically analyzed and when identified, reclassification is made to one of the other specific accounts of the legal deposit item. Civil These are court deposits to guarantee the execution of civil proceedings where the Company is challenging the amounts involved. Most of these proceedings refer to lawsuits filed by customers, involving issues of consumer rights, among others. There are some processes with differentiated matters, for instance, in which the value set by ANATEL for vacating certain transmission sub-bands is discussed, enabling the implementation of 4G technology. In this case, the amount deposited updated in court under discussion is R$ 72,533 70,560 Labor These are amounts deposited in court as guarantees for the execution and the filing of appropriate appeals, where the relevant matters or amounts involved are still being discussed. The total amount has been allocated between the various claims filed by registered employees and third-party service providers. Tax The company has legal deposits, relating to tax matters, made to support several ongoing legal discussions. Such deposits mainly relate to the following discussions: (a) Use of credit in the acquisition of electricity directly employed in the production process of companies, matter with positive bias in the judiciary. The current value of the deposits referring to this discussion is R$ 34,289 (R$ 34,544 (b) CPMF levy on loan conversion operations into the Company’s equity; recognition of the right not to collect the contribution allegedly levied on the simple change of ownership of current accounts due to merger. The current value of the deposits referring to this discussion is R$ 9,073 8,862 (c) Constitutionality of the collection of the functioning supervision fee (TFF - Taxa de Fiscalização do Funcionamento 20,022 18,883 (d) Non-homologation of compensation of federal debts withholding income tax credits (IRRF) for the alleged insufficiency of credits, as well as the deposit made for the purposes of release of negative Certificate of debts. The current value of the deposits related to this discussion is R$ 11,254 11,317 (e) Incidence of ISS on import services and third parties; alleged lack of collection in relation to ground cleaning and maintenance service of BRS (Base Radio Station), the ISS itself, the ISS incident on co-billing blackberry 8,048 7,843 (f) Accessory services provided for in the agreement 69/98 ICMS incident on the provision of communication services of the amounts charged for ACCESS, Membership, Activation, qualification, availability, subscription and use of the services, among others. The current value of the deposits related to this discussion is R$ 3,478 3,329 (g) Requirement by ANATEL of the public price for the administration of numbering resources. The current value of the deposits related to this discussion is R$ 3,582 3,514 (h) Deposit made by TIM S. A – unconstitutionality and illegality of the collection of FUST (Fund for Universalisation of Telecommunications Services). The right not to collect FUST, failing to include in its calculation base the revenues transferred by way of interconnection and EILD (Industrial Exploitation of Dedicated Line), as well as the right not to suffer the retroactive collection of the differences determined in function of not observing sum 7/2005 of ANATEL. The current value of the deposits referring to this discussion is R$ 61,752 58,664 (i) ICMS - Miscellaneous. Deposits made in several processes that discuss ICMS charges, mainly related to discussions on loan, DIFAL, exempt and non-taxed services, ICAP and Covenant 39. The current value of the deposits related to this discussion is R$ 9,960 14,505 (j) CSLL - charges related to cases of Jornal do Brasil 9,730 9,739 |
Investment
Investment | 12 Months Ended |
Dec. 31, 2021 | |
Investment | 13. Investment The ownership interest in associated company or subsidiary is valued using the equity accounting method. TIM’s Board of Directors, after analyzing the studies prepared and the non-binding proposals received, approved, in a meeting held on December 10, 2020, the incorporation of FiberCo Soluções de Infraestrutura Ltda. (“FiberCo”), a limited liability company, in preparation for a possible (or eventual) segregation of assets and provision of residential fiber optic infrastructure services. The Company was organized on December 16, 2020 and transformed on a limited liability corporation in May 2021. This process was one of the intermediate steps in the transformation of TIM in a provider of broadband services, and aimed to create an open fiber optic infrastructure vehicle (“FiberCo”) with the acquisition of a strategic partner that will become a partner of FiberCo. FiberCo operates in the wholesale market and can provide last-mile fiber connectivity and transportation services to market operators, with TIM as the client (see note 1). As mentioned in note 1, in November 2021, as a result of the spin-off of net assets of the broadband business and the creation of I-Systems (formerly FiberCo) with subsequent sale of 51% of its equity interest on behalf of IHS, TIM S.A. assessed the transaction as a loss of control and stopped consolidating it, recording the investment in an associated company, in the amount of R$ 1,612,957 49 1,601,703 TIM S.A. has 49 100 On December 31, 2021, the Company does not present indications of impairment in the recorded net investment. a) Interest in subsidiary As of December 31, 2020, TIM S.A. held 100% control over FiberCo (currently I-Systems). 2021 Fiber Co (current I-Systems) 2020 Fiber Co (current I-Systems) Number of quotas/shares held 1,000 1,000 Interest in total capital 100% 100% Shareholders' equity at 10/31/2021 (318) 1 Net loss from January to October 2021 (318) - Share of loss until October 31, 2021 (318) - Amount of the investment on December 31 - 1 Changes in investments in subsidiaries: FiberCo (current I-Systems) (subsidiary) Balance of investment at December 31, 2020 1 Share of loss until October 2021 (318) Capital increase 1,211,789 Write-off of investment (1,211,472) Balance of investment at November 16, 2021 - b) Interest in associate On December 31, 2021, the Company does not have subsidiaries in its corporate structure. In November 2021, TIM S.A. started having I-Systems as an affiliated company and to record the income (loss) of this company under the equity method, no longer consolidating it. 2021 I-Systems Number of shares held 1,794,287,995 Interest in total capital 49% Shareholders' equity 1,794,288 Net loss for the year (22,968) Equity in earnings (11,254) Investment amount 1,601,703 Change of investment in associate: I-Systems (associated company) Balance of investment at December 31, 2020 - Revaluation of minority interest at fair value 1,612,957 Share of loss - November 2021 and December 2021 (11,254) Balance of investment at December 31, 2021 1,601,703 |
Property, plant and equipment
Property, plant and equipment | 12 Months Ended |
Dec. 31, 2021 | |
Property, plant and equipment | 14. Property, plant and equipment Property, plant and equipment are stated at acquisition and/or construction cost, less accumulated depreciation and impairment losses (the latter only if applicable). Depreciation is calculated based on the straight-line method over terms that take into account the expected useful lives of the assets and their residual values. As of December 31, 2021, and December 31, 2020, the Company has no indication of impairment in its property, plant and equipment. The estimated costs of dismantling towers and equipment on rented properties are capitalized and depreciated over the estimated useful lives of these assets. The Company recognizes the present value of these costs in property, plant and equipment with a counter-entry to the liability “provision for future asset retirement.” Interest incurred on updating the provision is classified within financial expenses. Gains and losses on disposal are determined by comparing the amounts of these disposals with the book value at the time of the transaction and are recognized in “other operating income (expenses), net” in the statement of income. Schedule of changes in property, plant and equipment · Changes in property, plant and equipment Balance at December 2020 Additions Write-offs (i) Transfers Balance at December 2021 Total cost of property, plant and equipment, gross 47,429,167 5,572,362 (3,841,851) - 49,159,678 Commutation/transmission equipment 25,875,916 26,905 (2,920,511) 2,872,144 25,854,454 Fiber optic cables 878,100 - (125,366) 25,778 778,512 Leased handsets 2,643,336 805 (13,495) 175,808 2,806,454 Infrastructure 6,436,572 - (511,635) 518,348 6,443,285 Informatics assets 1,770,386 - (46,584) 32,538 1,756,340 General use assets 902,287 - (43,401) 57,959 916,845 Right-of-use assets 8,367,895 1,591,307 (179,875) - 9,779,327 Land 40,794 - - - 40,794 Construction in progress 513,881 3,953,345 (984) (3,682,575) 783,667 Total Accumulated Depreciation (29,328,469) (3,951,760) 2,428,951 - (30,851,278) Commutation/transmission equipment (18,130,526) (1,983,589) 1,926,121 - (18,187,994) Fiber optic cables (482,613) (65,669) 26,077 - (522,205) Leased handsets (2,398,217) (145,661) 9,187 - (2,534,691) Infrastructure (4,018,854) (408,540) 384,239 - (4,043,155) Informatics assets (1,617,970) (58,209) 46,449 - (1,629,730) General use assets (637,903) (48,204) 36,878 - (649,229) Right-of-use assets (2,042,386) (1,241,888) - - (3,284,274) Total property, plant and equipment, net 18,100,698 1,620,602 (1,412,900) - 18,308,400 Commutation/transmission equipment 7,745,390 (1,956,684) (994,390) 2,872,144 7,666,460 Fiber optic cables 395,487 (65,669) (99,289) 25,778 256,307 Leased handsets 245,119 (144,856) (4,308) 175,808 271,763 Infrastructure 2,417,718 (408,540) (127,396) 518,348 2,400,130 Informatics assets 152,416 (58,209) (135) 32,538 126,610 General use assets 264,384 (48,204) (6,523) 57,959 267,616 Right-of-use assets 6,325,509 349,419 (179,875) - 6,495,053 Land 40,794 - - - 40,794 Construction in progress 513,881 3,953,345 (984) (3,682,575) 783,667 (i) Net write-offs are mainly represented by: · R$ 1,218,340 as write-off of property, plant and equipment, which makes up part of the balance of R$ 1,211,789 of net assets that was paid-in as share capital of I-Systems (formerly FiberCo) on November 1, 2021, as described in note 1. · R$ 179,875 in right-of-use assets due to remeasurement of contracts, including changes in the term and scope of leases. Balance in December 2019 Additions Write-offs (i) Transfers Balance in December 2020 Total cost of property, plant and equipment, gross 43,358,751 4,687,207 (616,791) - 47,429,167 Commutation/transmission equipment 22,817,681 10,464 (174,249) 3,222,020 25,875,916 Fiber optic cables 813,589 - - 64,511 878,100 Leased handsets 2,489,995 912 (7,140) 159,569 2,643,336 Infrastructure 6,096,847 92,234 (8,063) 255,554 6,436,572 Informatics assets 1,721,251 1 (9,996) 59,130 1,770,386 General use assets 859,505 1 (1,544) 44,325 902,287 Right-of-use assets 6,933,416 1,849,539 (415,060) - 8,367,895 Land 40,794 - - - 40,794 Construction in progress 1,585,673 2,734,056 (739) (3,805,109) 513,881 - Total accumulated depreciation (25,746,587) (3,767,678) 185,796 - (29,328,469) Commutation/transmission equipment (16,389,213) (1,906,480) 165,167 - (18,130,526) Fiber optic cables (410,567) (72,046) - - (482,613) Leased handsets (2,256,863) (143,309) 1,955 - (2,398,217) Infrastructure (3,593,833) (432,549) 7,528 - (4,018,854) Informatics assets (1,565,309) (62,649) 9,988 - (1,617,970) General use assets (590,658) (48,403) 1,158 - (637,903) Right-of-use assets (940,144) (1,102,242) - - (2,042,386) Total property, plant and equipment, net 17,612,164 919,529 (430,995) - 18,100,698 Commutation/transmission equipment 6,428,468 (1,896,016) (9,082) 3,222,020 7,745,390 Fiber optic cables 403,022 (72,046) - 64,511 395,487 Leased handsets 233,132 (142,397) (5,185) 159,569 245,119 Infrastructure 2,503,014 (340,315) (535) 255,554 2,417,718 Informatics assets 155,942 (62,648) (8) 59,130 152,416 General use assets 268,847 (48,402) (386) 44,325 264,384 Right-of-use assets 5,993,272 747,297 (415,060) - 6,325,509 Land 40,794 - - - 40,794 Construction in progress 1,585,673 2,734,056 (739) (3,805,109) 513,881 (i) The amount of R$ 415,060 is represented by remeasurement of contracts and includes changes in the term and scope of leases and a review of the estimate in relation to low-value vehicle contracts. The construction in progress represent the cost of projects in progress related to the construction of networks and/or other tangible assets in the period of their construction and installation, until the moment they come into operation, when they will be transferred to the corresponding accounts of these assets. The lease rights of use are represented by leased agreements of identifiable assets within the scope of IFRS16 standard. These rights refer to leases of network infrastructure, stores and kiosks, real estate, land (Network) and fiber, as below: Right-of-use assets Network infrastructure Shops & kiosks & real estate Land (Network) Fiber Total Balances at December 31, 2020 3,019,900 400,262 1,500,909 1,404,438 6,325,509 Additions 630,805 295,874 237,150 427,478 1,591,307 Remeasurement (83,606) (45,312) (23,772) (27,185) (179,875) Depreciation (518,590) (109,512) (210,054) (403,732) (1,241,888) Balances at December 31, 2021 3,048,509 541,312 1,504,233 1,400,999 6,495,053 Useful life – % 7.86 9.70 9.47 3.24 Schedule of depreciation rates · Depreciation rates Annual fee % Commutation/transmission equipment 08 14.29 Fiber optic cables 4 10 Leased handsets 14.28 50 Infrastructure 4 20 Informatics assets 10 20 General use assets 10 20 In 2021, pursuant to IAS 16, approved by a CVM Deliberation, the Company assessed the useful life estimates for their property, plant and equipment, and concluded that there were no significant changes or alterations to the circumstances on which the estimates were based that would justify changes to the useful lives currently in use. As of December 31, 2021, and December 31, 2020, the Company has no indication of impairment in its property, plant and equipment. |
Intangible assets
Intangible assets | 12 Months Ended |
Dec. 31, 2021 | |
Intangible assets | 15. Intangible assets Intangible assets are measured at historical cost less accumulated amortization and impairment losses (if applicable) and reflect: (i) the purchase of authorizations and rights to use radio frequency bands, and (ii) software in use and/or development. Intangible assets also include: (i) infrastructure right-of-use of other companies, and (ii) goodwill on expectation of future profits in purchases of companies. Amortization charges are calculated using the straight-line method over the estimated useful life of the assets contracted and over the terms of the authorizations. The useful life estimates of intangible assets are reviewed regularly. Financial costs on funds raised generically (with no specific allocation), used to obtain a qualifying asset, which is an asset that necessarily demands a substantial period of time to become ready for intended use is capitalized as part of this asset’s cost when it is probable that will result in future economic benefits to the Company and such costs can be reliably measured. Within this concept, we had the capitalization of costs for the 700MHz 4G license between 2014 and 2019 and we currently have the capitalization of costs on the acquisition of the 5G license for the radio frequency not readily available and other obligations related to such radio frequency. Said capitalization occurs until the asset is considered available for use by Management, and as of that date onwards, capitalization of interest and charges on this asset ends. These costs are amortized over the estimated useful lives. The values of permits for the operation of SMP and rights to use radio frequencies, as well as software Schedule of movement in intangible assets (a) Changes in intangible assets Balance in December 2020 Additions/ Amortization Write-offs Transfers Balance in December 2021 Total cost of intangible assets, gross 31,444,050 4,352,331 (1,165,840) - 34,630,541 Right to use software 19,117,515 - (112,626) 906,115 19,911,004 Authorizations 9,931,248 50,408 (1,737) 1,171,578 11,151,497 Goodwill (i) 1,527,220 - (1,051,477) - 475,743 Infrastructure right-of-use - LT Amazonas 177,866 - - 8,355 186,221 Other assets 329,626 - - 3,490 333,116 Intangible assets under development 360,575 4,301,923 - (2,089,538) 2,572,960 Total accumulated amortization (22,416,975) (1,739,937) 111,450 - (24,045,462) Right to use software (16,378,487) (1,164,210) 110,679 - (17,432,018) Authorizations (5,816,241) (542,196) 771 - (6,357,666) Infrastructure right-of-use - LT Amazonas (67,966) (8,731) - - (76,697) Other assets (154,281) (24,800) - (179,081) Total intangible assets, net 9,027,075 2,612,394 (1,054,390) - 10,585,079 Right to use software (c) 2,739,028 (1,164,210) (1,947) 906,115 2,478,986 Authorizations (f) 4,115,007 (491,788) (966) 1,171,578 4,793,831 Goodwill (d) 1,527,220 - (1,051,477) - 475,743 Infrastructure right-of-use - LT Amazonas (e) 109,900 (8,731) - 8,355 109,524 Other assets 175,345 (24,800) - 3,490 154,035 Intangible assets under development 360,575 4,301,923 - (2,089,538) 2,572,960 (i) Includes the write-off of approximately 90% of the total goodwill recorded on the acquisition of TIM Fiber SP Ltda. and TIM Fiber RJ S.A., in the amount of R$ 1,051,477. Balance in December 2019 Balance of merged company Additions/ Amortization Write-offs Transfers Balance in December 2020 Total cost of intangible assets, gross 29,861,788 367,571 1,215,636 (945) - 31,444,050 Right to use software 18,184,382 - - (939) 934,072 19,117,515 Authorizations 9,811,794 - 32,105 (6) 87,355 9,931,248 Goodwill 1,159,649 367,571 - - - 1,527,220 Infrastructure right-of-use - LT Amazonas 169,327 - 8,539 - - 177,866 Other assets 327,360 - - - 2,266 329,626 Intangible assets under development 209,276 - 1,174,992 - (1,023,693) 360,575 Total Accumulated Amortization (20,561,032) (1,856,917) 974 - (22,416,975) Right to use software (15,093,166) - (1,286,295) 974 - (16,378,487) Authorizations (5,278,413) - (537,828) - - (5,816,241) Infrastructure right-of-use - LT Amazonas (60,204) - (7,762) - - (67,966) Other assets (129,249) - (25,032) - (154,281) Total intangible assets, net 9,300,756 367,571 (641,281) 29 - 9,027,075 Right to use software (c) 3,091,216 - (1,286,295) 35 934,072 2,739,028 Authorizations (f) 4,533,381 - (505,723) (6) 87,355 4,115,007 Goodwill (d) 1,159,649 367,571 - - - 1,527,220 Infrastructure right-of-use - LT Amazonas (e) 109,123 - 777 - - 109,900 Other assets 198,111 - (25,032) - 2,266 175,345 Intangible assets under development 209,276 - 1,174,992 - (1,023,693) 360,575 The intangible assets in progress represent the cost of projects in progress related to the intangible assets in the period of their construction and installation, until the moment they come into operation, when they will be transferred to the corresponding accounts of these assets. Includes 5G License acquisition values, pursuant to note 15.f. Schedule of amortization rates (b) Amortization rates Annual fee % Software licenses 20 Authorizations 5 50 Right to use infrastructure 5 Other assets 7 10 (c) Right to use software The costs associated with maintaining software software Directly attributable costs that are capitalized as part of the software product are related to employee costs directly allocated in its development. (d) Goodwill registered in previous years The Company has the following goodwill, based on the expected future profitability on December 31, 2021 and 2020: Goodwill from TIM Fiber SP and TIM Fiber RJ acquisitions 1,159,649 In November 2021, the Company concluded the drop-down of liquid assets related to the residential broadband business linked to the secondary network infrastructure to the wholly-owned subsidiary FiberCo and sold 51% of the equity interest in FiberCo, currently named I- Systems, on behalf of IHS. Currently, due to the closing of the transaction, TIM S.A. wrote-off about 90% of the total goodwill recorded in the acquisition of TIM Fiber SP Ltda. and TIM Fiber RJ S.A. in the amount of R$ 1,051,477. As a result, IHS currently holds 51% of the share capital of I-Systems, with TIM S.A. having a minority (non-controlling) interest of 49% in I-Systems. Consequently, with the closing of this deal in November 2021, the goodwill initially recorded on the acquisition of the companies Fiber RJ and Fiber SP was reduced to R$ 108,171. On August 31, 2020, with the merger of TIM Participações S.A. by TIM S.A, the Company recorded the goodwill arising from the merger of the net assets of TIM Participações, which were originated in acquisition transactions as described below: Goodwill acquisition of "Intelig" by TIM Participações 210,015 impairment Goodwill from the acquisition of minority interests in TIM Sul and TIM Nordeste 157,556 Impairment test As required by the accounting standard, the Company tests goodwill on business combinations involving TIM Group companies. The methodology and assumptions used by Management for the aforementioned impairment test is summarized below: The management of the Company understands that the smallest unit generating cash for impairment On December 31, 2021, the impairment For the calculation of fair value, the level of hierarchy within which the measurement of the fair value of the asset (cash generating unit) is classified was considered. For the company, as there is only one CGU this was classified in its entirety as Level 1, for the disposal costs we consider that it is irrelevant considering the variation between the fair value level 1 and the book value of the cash generating unit. The fair value of Level 1 financial instruments comprises the instruments traded in active markets and based on quoted market prices on the balance sheet date. A market is considered active when the quoted prices are readily and regularly available from an Exchange, distributor, broker, industry group, pricing service or regulatory agency, and these prices represent actual market transactions which occur regularly on a purely commercial basis. Its securities are traded on BOVESPA with code (TIMS3) and have a regular trading volume that allows the measurement (Level 1) as the product between the quoted price for the individual asset or liability and the amount held by the entity. The measurement was made based on the value of the share at the balance sheet closing date and sensitivity tests were also performed and in none of the scenarios was identified any indication of impairment (e) Infrastructure right-of-use - LT Amazonas The company has signed infrastructure rights agreements with companies that operate electricity transmission lines in the Northern Region of Brazil. These contracts fall within the scope of IFRIC 4 as financial commercial leases. Additionally, the Company has signed network infrastructure sharing agreements with Telefónica Brasil S.A., also in the North Region. In these, the two operators optimize resources and reduce their respective operating costs (note 16). (f) Authorizations In this item are recorded the values related to the acquisition of Lot 2 in the auction of the 700 MHz band in the amount of R$ 1,739 1,199 1,199 In 2021, the Company recorded the values related to the acquisition of the 5th Generation (“5G”) mobile telephony radio frequencies. In November 2021, TIM participated in the 5G Auction and was the winner of several lots in the 2.3GHz, 3.5Ghz and 26Ghz radio frequency bands. These licenses will be paid over a period of 10 20 884 2,680 Aiming to fulfill the additional obligations, the Company foresees, according to the notice, that there will the constitution of managing entities, which are only intended to fulfill the commitments provided for in the Auction. The companies that win the Auction must disburse only the amounts provided for in the public notice so that such entities comply with the defined obligations. There are additional obligations provided for related to 3.5GHz radio frequency (the band cleaning obligation, interference solution, among others), which must be complied with by the Band Management Entity (“EAF”), and related to 26GHz radio frequency (connectivity project for public schools), which must be complied with by the Entity Managing the Connectivity of Schools (“EACE”). The 2.3GHz and 26GHz radio frequencies are readily available for use by the Company (operating assets), generating the registration in “Authorizations” of the amounts related to the licenses (R$ 614 million) and the obligations related to the 26GHz license, which will be fulfilled through EACE (R$ 550 million). The disbursements with EACE (R$ 633 million), provided for in the Public Notice, will occur in 5 semi-annual installments between 2022 and 2024, and are monetarily restated by the IGP-DI. The Company evaluated the application of the concept of adjustment to present value (“AVP”) upon initial recognition (R$ 83 million). The 3.5GHz radio frequency is not readily available, requiring spectrum cleaning activities to be available for use, and, thus, it is registered in assets in progress (R$ 270 million). Therefore, the obligations related to this activity, to be carried out by EAF (R$ 2,104 million) are also recorded under assets in progress Furthermore, as described above, the Company capitalizes loan costs for qualifying assets that require a substantial period of time to be in a condition for use as intended by Management. This concept includes the 3.5GHz radio frequency. On December 31, 2021, the Company recorded R$ 1 million in intangible assets referring to Selic interest incurred on the 3.5GHz radio frequency and R$ 19 million related to the monetary restatement of amounts due to EAF. Said balances are recorded under assets in progress. Thus, the total effect on the Company’s intangible assets in 2021 referring to 5G radio frequencies and related obligations was R$ 3,584 2,394 1,190 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Leases | 16. Leases Leases that the Company, as a lessee, holds substantially all the risks and rewards of ownership are classified as finance leases. They are capitalized at the lease's commencement at the lower of the fair value of the leased asset and the present value of payments provided for in contract, and lease liability as a counterparty. Interest related to the leases is recognized in the statement of income as financial costs over the term of the contract. Leases in which the Company, as a lessor, transfers substantially all the risks and rewards of ownership to the other party (lessee) are classified as finance leases. These lease values are transferred from the intangible assets of the Company and are recognized as a lease receivable at the lower of the fair value of the leased item and/or the present value of the receipts provided for in the agreement. Interest related to the lease is recognized in the statement of income as financial income over the contractual term. Asset leases are financial assets or liabilities classified and/or measured at amortized cost. Schedule of lease receivables Assets 2021 2020 LT Amazonas 166,944 162,198 Subleases - Stores – IFRS 16 76,177 - 243,121 162,198 Current portion (30,076) (5,357) Non-current portion 213,045 156,841 The table below presents the schedule of cash receipts for the agreement currently in force, representing the estimated receipts (nominal values) in the signed agreements. These balances differ from those shown in the books since, in the case of the latter, the amounts are shown at present value: Schedule of lease receivables nominal and present value Up to December 2022 Jan 2023–Dec 2026 Jan 2027 onwards Nominal values Present value 55,939 167,320 176,895 400,154 243,121 LT Amazonas (i) 26,124 106,491 176,895 309,510 166,944 Subleases - Stores – IFRS 16 (ii) 29,815 60,829 - 90,644 76,177 (i) LT Amazonas As a result of the contract signed with LT Amazonas, the Company signed network infrastructure sharing agreements with Telefónica Brasil S.A. In these agreements, the company and Telefónica Brasil S.A. share investments made in the Northern Region of Brazil. The company has monthly amounts receivable from Telefónica Brasil S.A. for a period of 20 years, adjusted annually by the IPC-A. The discount rate used to calculate the present value of the installments due is 12.56 (ii) Subleases - Stores - IFRS 16 The Company, due to sublease agreements for third parties in some of its stores, recognized the present value of short and long term receivables, which are equal in value and term to the liability cash flows of the contracts called “resale stores.” The impact on lease liabilities is reflected in “Leases - Stores & Kiosks.” Liabilities Schedule of lease liabilities 2021 2020 LT Amazonas (i) 302,091 290,385 Sale of Towers ( leaseback (ii) 1,507,629 1,256,410 Other (iv) 142,458 115,027 Sub-total 1,952,178 1,661,822 Other leases (iii) Leases – Network Infrastructure 3,345,930 3,252,463 Leases - Shops & kiosks & real estate 653,422 434,990 Leases - Land (Network) 1,657,345 1,606,567 Leases – Fiber 1,454,664 1,422,993 Subtotal lease IFRS 16 7,111,361 6,717,013 Total 9,063,539 8,378,835 Current portion (1,269,878) (1,054,709) Non-current portion 7,793,661 7,324,126 The amount of interest paid in the year ended December 31, 2021 related to IFRS 16 is R$ 599,296 567,261 Changes to the lease liabilities are shown in note 37. The table below presents the future payment schedule for the agreements in force, representing the estimated disbursements (nominal values) in the signed agreements. These nominal balances differ from those shown in the books since, in the case of the latter, the amounts are shown at present value: Schedule of other lease operations Up to December 2022 Jan 2023–Dec 2026 Jan 2027 onwards Nominal values Present value Total - Lease liability 2,139,718 6,431,022 5,898,599 14,469,339 9,063,539 LT Amazonas (i) 57,349 202,271 336,138 595,758 302,091 Sale and leaseback of Towers (ii) 245,800 992,299 2,135,989 3,374,088 1,507,629 Other (iv) 28,348 112,493 142,458 283,299 142,458 Total other leases (iii) 1,808,221 5,123,959 3,284,014 10,216,194 7,111,361 Leases – Network infrastructure 752,818 2,450,689 1,735,619 4,939,126 3,345,930 Leases - Shops & kiosks & real estate 183,468 440,996 356,198 980,662 653,422 Leases - Land (Network) 340,099 1,135,266 1,192,197 2,667,562 1,657,345 Leases – Fiber 531,836 1,097,008 - 1,628,844 1,454,664 i) LT Amazonas The Company executed agreements for the right to use the infrastructure of companies that operate electric power transmission lines in Northern Brazil (“LT Amazonas”). The terms of these agreements are for 20 years, counted from the date on which the assets are ready to operate. The contracts provide for monthly payments to the electric power transmission companies, restated annually at the IPCA. The discount rate used to calculate the present value of the installments due is 14.44 ii) Sale and leaseback The Company entered into two Sales Agreements with American Tower do Brasil Cessão de Infraestruturas Ltda. (“ATC”) in November 2014 and January 2015 for up to 6,481 3 billion In total, 5,873 transfers of towers occurred, being 54, 336 and 5,483 in the years 2017, 2016 and 2015, respectively. This transaction resulted in a sales amount of R$ 2,651,247, 1,088,390 The discount rates used at the date of the transactions, ranging from 11.01 17.08 (iii) Other leases: In addition to lease agreements mentioned above, the Company also has lease agreements that qualify within the scope of IFRS 16. The present value, principal and interest value on December 31, 2021 for the above contracts was estimated month-to-month, based on the average incremental rate of the Company’s loans, namely 8.94 9.06 (iv) It is substantially represented by lease transactions in transmission towers. The lease amounts considered low value or lower in the 12-month period recognized as rental expense on December 31, 2021 is R$ 36,310 28,523 |
Other amounts recoverable
Other amounts recoverable | 12 Months Ended |
Dec. 31, 2021 | |
Other Amounts Recoverable | |
Other amounts recoverable | 17. Other amounts recoverable These refer to Fistel credit amounts arising from the reduction of the client base, which may be offset by future changes in the base, or used to reduce future obligations, and are expected to be used in the reduction of the TFF contribution (operating supervision fee) due to Fistel. As of December 31, 2021, this credit is R$ 28,661 43,906 |
Supplier
Supplier | 12 Months Ended |
Dec. 31, 2021 | |
Supplier | 18. Supplier Accounts payable to suppliers are obligations payable for goods or services that were acquired in the usual course of business. They are initially recognized by fair value and subsequently measured by amortized cost using the effective interest rate method. Given the short maturity of these obligations, in practical terms, they are usually recognized at the value of the corresponding invoice. Schedule of supplier accounts payable 2021 2020 3,267,404 3,128,732 Local currency 3,063,458 2,932,486 Suppliers of materials and services (i) 2,966,897 2,839,547 Interconnection (ii) 65,464 64,066 Roaming (iii) 212 212 Co-billing (iv) 30,885 28,661 Foreign currency 203,946 196,246 Suppliers of materials and services (i) 153,082 148,888 Roaming (iii) 50,864 47,358 Current portion 3,267,404 3,128,732 (i) Represents the amount to be paid to suppliers in the acquisition of materials and in the provision of services applied to the tangible and intangible asset or for consumption in the operation, maintenance and administration, in accordance with the terms of the contract between the parties. (ii) Refers to as the use of the network of other fixed and mobile operators such cases where calls are initiated on the TIM network and terminated on the other operators. (iii) Refers to calls made when the customer is outside their registration area and is considered a visitor on the other network. (vi) Refers to calls made by the customer when choosing another long-distance operator. |
Authorizations payable
Authorizations payable | 12 Months Ended |
Dec. 31, 2021 | |
Authorizations Payable | |
Authorizations payable | 19. Authorizations payable Schedule of licenses payables 2021 2020 Renewal of authorizations (i) 191,329 188,498 Updated ANATEL liability (ii) 164,269 146,949 Authorizations payable (iii) 3,525,489 - Total 3,881,087 335,447 Current portion (2,630,169) (102,507) Non-current portion 1,250,918 232,940 (i)To provide the SMP, the Company obtained authorizations of the right to use radio frequency for a fixed term, renewable for another 15 (fifteen) years. In the option for the extension of the right of this use, it is due the payment of the amount of 2% on the net revenue of the region covered by the authorization that ends each biennium. On December 31, 2021, the Company had balances falling due related to renovation of authorizations in the amount of R$ 191,329 (R$ 188,498 on December 31, 2020). (ii) On December 5, 2014, the company signed the authorization term of the 700 MHz band and paid the equivalent of R$1,678 million, recording the remaining balance in the amount of R$ 61 million as commercial liability, according to the payment method provided for in the notice. On June 30, 2015, the company filed a lawsuit questioning the collection of the excess nominal value of R$ 61 million (R$ 164 million on December 31, 2021) which is still pending trial. (iii) As described in note 15.f, in November 2021, TIM participated in the 5G Auction of the 2.3GHz, 3.5Ghz and 26Ghz radio frequency bands for the deployment of the 5th Generation mobile telephony, winning several lots in these radio frequencies. In December 2021, the Authorization Terms were signed, characterizing the actual acquisition of the right over the lots of these radio frequencies. For the amounts related to radio frequencies (R$ 884 million upon initial registration), Selic interest is levied, and the Company will make annual payments for a period of 20 years. Regarding amounts related to disbursement obligations with EAF and EACE entities (R$ 2,737 million upon initial registration, of which R$ 2,654 million net of adjustment do present value), there is a monetary restatement by IGP-DI, and disbursements will occur between 2022 and 2024. As of December 31, 2021, the outstanding balance is 3,525 million. The authorizations payable on December 31, 2021 due in long-term is in accordance with the following schedule: 2023 406,371 2024 141,151 2025 46,535 2026 46,535 2027 46,535 2028 46,535 2029 46,535 2030 46,535 2031 424,186 Total 1,250,918 The primary authorizations held by TIM S.A. on December 31, 2021, as well as their expiration dates, are shown in the table below: Maturity date Terms of authorization 450 MHz 800 MHz, 900 MHz and 1,800 MHz Additional frequencies 1800 MHz 1900 MHz and 2100 MHz (3G) 2500 MHz V1 band (4G) 2500 MHz ( P band** (4G) 700 MHz (4G) 2.3 GHz (5G) 3.5 GHz (5G) 26 GHz (5G) Amapá, Roraima, Pará, Amazonas and Maranhão - Mar 2031* Apr 2023 Apr 2023 Oct 2027 Part of AR92 (PA), Feb 2024* Dec 2029 - Dec 2041 Dec 2031 Rio de Janeiro and Espírito Santo Oct 2027 Mar 2031* ES, Apr 2023 Apr 2023 Oct 2027 Part of AR21 (RJ), Feb 2024* Dec 2029 Dec 2041 Dec 2041 Dec 2031 (lots I&J) & Dec 2041 (lot H) Acre, Rondônia, Mato Grosso, Mato Grosso do Sul, Tocantins, Distrito Federal, Goiás, Rio Grande do Sul (except county of Pelotas and region) and municipalities of Londrina and Tamarana in Paraná PR, Oct 2027 Mar 2031* Apr 2023 Apr 2023 Oct 2027 Part of AR61 (DF), Feb 2024* Dec 2029 South – Dec 2041 Dec 2041 Dec 2031 (lots I&J) & Dec 2041 (lot H) São Paulo - Mar 2031* Countryside, Apr 2023 Apr 2023 Oct 2027 - Dec 2029 - Dec 2041 Dec 2031 (lots I&J) & Dec 2041 (lot H) Paraná (except counties of Londrina and Tamarana) Oct 2027 Sep 2022* Apr 2023 Apr 2023 Oct 2027 AR41, except Curitiba and the Metropolitan Region, Feb 2024* AR41, Curitiba and Metropolitan Region, July 2031 Dec 2029 Dec 2041 Dec 2041 Dec 2031 (lots I&J) & Dec 2041 (lot H) Santa Catarina Oct 2027 Sep 2023* Apr 2023 Apr 2023 Oct 2027 - Dec 2029 Dec 2041 Dec 2041 Dec 2031 (lots I&J) & Dec 2041 (lot H) County and region of Pelotas, in the state of Rio Grande do Sul - Apr 2024* - Apr 2023 Oct 2027 - Dec 2029 Dec 2041 Dec 2041 Dec 2031 (lots I&J) & Dec 2041 (lot H) Pernambuco - May 2024* - Apr 2023 Oct 2027 Part of AR81, July 2031 Dec 2029 - Dec 2041 Dec 2031 Ceará - Nov 2023* - Apr 2023 Oct 2027 - Dec 2029 - Dec 2041 Dec S2031 Paraíba - Dec 2023* - Apr 2023 Oct 2027 - Dec 2029 - Dec 2041 Dec 2031 Rio Grande do Norte - Dec 2023* - Apr 2023 Oct 2027 - Dec 2029 - Dec 2041 Dec 2031 Alagoas - Dec 2023* - Apr 2023 Oct 2027 - Dec 2029 - Dec 2041 Dec 2031 Piauí - Mar 2024* - Apr 2023 Oct 2027 - Dec 2029 - Dec 2041 Dec 2031 Minas Gerais (except the counties of Sector 3 of the PGO for 3G radio frequencies, leftovers and 5G) - Apr 2028* Apr 2023 Apr 2023 Oct 2027 Part of AR31, Feb 2030* Dec 2029 Dec 2041 Dec 2041 Dec 2031 (lots I&J) & Dec 2041 (lot H) Bahia and Sergipe - Aug 2027* - Apr 2023 Oct 2027 - Dec 2029 - Dec 2041 Dec 2031 * Terms already renewed for 15 years. ** Only complementary areas in specific states. |
Loans and financing
Loans and financing | 12 Months Ended |
Dec. 31, 2021 | |
Loans and financing | 20. Loans and financing They are classified as financial liabilities measured at amortized cost, being represented by non-derivative financial liabilities that are not usually traded before maturity. At the initial recognition they are recorded by their fair value, and after initial recognition, they are measured by the effective interest rate method. Appropriations of financial expenses according to the effective interest rate method are recognized in income, under financial expenses. Schedule of appropriation of financial expenses Description Currency Charge Maturity December 2021 December 2020 KFW Finnvera (ii) USD Libor 6M+ 0.75% p.a. Jan 2024–Dec 2025 278,176 344,125 BAML (ii EUR 0.2790% p.a. Aug 2021 - 570,844 Scotia¹ ( ii) USD 1.2410–1.7340% p.a. Apr 2024 559,650 1,030,761 BNP Paribas (ii) USD 2.8220% p.a. Jan 2022 428,793 399,302 BNP Paribas (ii) BRL 7.0907% p.a. Jan 2024 515,166 - Debêntures² (ii) BRL IPCA + 4.1682% p.a. (i) June 2028 1,667,399 - BNDES (i) BRL IPCA + 4.2283% p.a. Nov 2031 396,281 - Total 3,845,465 2,345,032 Current (538,450) (1,689,385) Non-current 3,307,015 655,647 ¹ The outstanding debt rate on December 31, 2021 with Scotia Bank is 1.4748% p.a. ² The automatic decrease of up to 0.25bps is estimated in remunerative interest will comply with sustainable targets established in the indenture. Insurances (i) Certain receivables from TIM S.A.; (ii) Do not have a guarantee. The Company's financing, contracted with BNDES, was obtained for the expansion of the mobile telephone network and has restrictive contractual clauses that provide for the fulfilment of certain financial and non-financial rates calculated every six months. In February 2020, the company made the full prepayment of financing obtained from BNDES, active at that time; however, there are still contracts in effect with the bank regulating the lines of credit available for withdrawal that are shown in the table below: Financial indices are: (1) Shareholders' equity over total assets; (2) EBITDA on net financial expenses; (3) Total financial debt on EBITDA and (4) Short-term net financial debt to EBITDA. The Company has been complying with all the established ratios. In April 2021, the Company contracted a new loan with The Bank of Nova Scotia, in the amount of R$ 572 million, at the cost of CDI + 1.05% p.a. and a 3-year term In April 2021, the Company contracted a new loan with BNP Paribas, in the amount of R$ 500 million, at the cost of CDI + 1.07% p.a. and a 2.9-year term. The operation aimed to strengthen the Company's cash for working capital. In June 2021, the Company carried out the second issue of simple, non-convertible, unsecured debentures, carried out pursuant to CVM Instruction No. 476, in the amount of R$ 1,600 the remunerative interest of IPCA + 4.1682% p.a. can be automatically reduced by up to 0.25bps. The debentures will bear semiannual interest and amortization will take place, respectively, in the 5th, 6th and 7th year. The issue was aimed at financing projects for the implementation, expansion and modernization of fixed and mobile networks in different technologies, including 5G, and falls within the provisions of Law No. 12431 of June 24, 2011. Within the scope of this operation, the Company elected to sign an interest rate swap contract for hedging purposes, at the cost of CDI + 0.95% per annum In November 2021, the Company obtained from BNDES the FINAME credit facility in the total available amount of R$ 390 the cost of IPCA + 4.2283% p.a. and a total term of 10 years with a 3-year grace period to start of amortization. The Company elected to sign an interest rate swap contract for hedging purposes, at the final cost of 96.95% of CDI. The table below shows the position of financing and available lines of credit: Schedule of credit facilities Amount used until 30 September 2020 Type Currency Term Term Remaining value Amount used up to December 31, 2021 BNDES (i) TJLP May 2018 Mar 2022 1,090,000 1,090,000 - BNDES (ii) TJLP May 2018 Mar 2022 20,000 20,000 - FINAME (iii) IPCA Mar 2019 Mar 2022 390,000 - 390,000 BNB (iv) IPCA Jan 2020 June 2023 752,479 752,479 - Total R$: 2,252,479 1,862,479 390,000 Objective: (i) Support to TIM's investment plan for the years 2017 to 2019 including, but not limited to, the acquisition of National equipment (ii) Investments in social projects within the community (iii) Exclusive application in the acquisition of machinery and equipment, industrial systems and/or other components of national manufacture. (iv) Support to TIM's investment plan for the years 2020 to 2022 in the region of operation of Banco do Nordeste do Brasil Loans and financing on December 31, 2021 due in long-term is in accordance with the following schedule: Schedule of long term portions of borrowing and financing 2023 88,818 2024 1,125,526 2025 80,712 2026 615,727 2027 615,727 2028 618,006 2029 55,714 2030 55,714 2031 51,071 3,307,015 The nominal value of the loans and financing is consistent with their respective payment schedule. Schedule of nominal value of the loans Nominal value 2022 538,450 2023 88,818 2024 1,125,526 2025 80,712 2026 615,727 2027 615,727 2028 618,006 2029 55,714 2030 55,714 2031 51,071 3,845,465 Fair value of loans In Brazil, there is no consolidated long-term debt market with the characteristics verified in the financing obtained from KFW Finnvera, which has the Finnish development agency Finnvera as guarantor. Both are financing for the purchase of equipment and, therefore, have a character of subsidy and promotion of commercial activity between the company and certain suppliers. For the purposes of fair value analysis, considering the characteristics of this transaction, the company understands that its fair value is equal to that recorded on the balance sheet. With respect to proceeds contracted with the Bank of Nova Scotia, BNP Paribas, Debentures and BNDES, the fair value of these loans is considered to be the present value of the active tip of the swap contracts that protect the company from changes in exchange rates and interest. The fair value of the operations on December 31, 2021 is, respectively, R$ 563,259 524,422 1,635,203 384,073 |
Indirect taxes, charges and con
Indirect taxes, charges and contributions payable | 12 Months Ended |
Dec. 31, 2021 | |
Indirect Taxes Charges And Contributions Payable | |
Indirect taxes, charges and contributions payable | 21. Indirect taxes, charges and contributions payable Schedule of indirect taxes, charges and contributions payable 2021 2020 Indirect taxes, charges and contributions payable 1,421,955 938,880 Value added tax on goods and services - ICMS 303,721 359,498 ANATEL’s taxes and fees (i) 1,042,933 509,087 Imposto sobre Serviço 66,075 66,082 Other 9,226 4,213 Current portion (1,418,682) (935,778) Non-current portion 3,273 3,102 (i) In 2020, to minimize the impacts of the pandemic, Provisional Act 952, dated April 15, 2020, was enacted, authorizing the postponement of payment of taxes, such as TFF, Condecine and CFRP, in the amount of R$ 790 million, to August 31, 2020. In the third quarter of 2020, the Company made a partial payment in the amount of R$ 300 million referring to CFRP and Condecine, but due to a preliminary injunction in court, there was no need to pay the Fistel (TFF), which remains outstanding until the final and unappealable decision. In 2021, there was the partial payment of fees of approximately R$ 300 480 During 2021, there was the recognition of R$ 51.2 million |
Direct taxes, charges and contr
Direct taxes, charges and contributions payable | 12 Months Ended |
Dec. 31, 2021 | |
Direct Taxes Charges And Contributions Payable | |
Direct taxes, charges and contributions payable | 22. Direct taxes, charges and contributions payable Current income tax and social contribution charges are calculated on the basis of the tax laws enacted, or substantially enacted, up to the balance sheet date. The legislation allows companies to opt for quarterly or monthly payment of income tax and social contribution. In 2021, the Company has chosen to make the quarterly payment of income tax and social contribution. Schedule of direct taxes charges and contributions payable 2021 2020 Direct taxes, charges and contributions payable 258,340 508,743 Income tax (IR) and social contribution (CS) (i) 186,294 313,145 PIS/COFINS (Social integration program/Social security) 41,916 154,353 Other (ii) 30,130 41,245 Current portion (245,113) (296,299) Non-current portion 13,227 212,444 (i) The variation is related to the changes in the calculation of the Annual Taxable Income by the Quarterly Taxable Income. Thus, the amount presented in December 2020 comprised the IRPJ and CSLL due between January and December of that year, while in 2021 the liabilities presented represent only the amount due in the fourth quarter. (ii) The breakdown of this account mainly refers to the company's adhesion to the Tax Recovery Program - REFIS from 2009 for payment of installments of the outstanding debts of federal taxes (PIS – Social Integration Program, COFINS – Contribution to Social Security Financing, IRPJ – Corporate Income Tax and CSLL – social contribution on Net Profit), whose fina l |
Deferred revenues
Deferred revenues | 12 Months Ended |
Dec. 31, 2021 | |
Deferred revenues | 23. Deferred revenues Schedule of deferred revenue 2021 2020 Deferred revenues 886,340 1,021,924 Prepaid services (i) 118,795 189,482 Government grants (ii) 11,184 24,732 Anticipated revenues 8,522 11,163 Deferred revenues on sale of towers (iii) 734,826 788,921 Contractual liabilities (iv) 13,013 7,626 Current portion (197,179) (266,436) Non-current portion 689,161 755,488 (i) Referring to the recharge of voice credits and data not yet used by customers relating to prepaid system services that are appropriate to the result when the actual use of these services by clients. (ii) Referring to the release of resources related to the financing line with BNDES (Investment Support Program-BNDES PSI). The sum of grants granted by BNDES up to December 31, 2021 is R$ 203 11,184 24,732 (iii) Referring to the amount of revenue to be appropriated by the sale of the towers (note 16). (iv) Contracts with customers. The table below includes information on the portion of trade accounts receivable, from which contractual assets and liabilities originate. Schedule of contractual assets and liabilities 2021 Accounts receivable included in trade accounts 2,051,120 Contractual assets 15,340 Contractual liabilities (13,013) The contracts with customers gave rise to the allocation of discounts under combined loyalty offers, where the discount may be given on equipment and / or service, generating a contractual asset or liability, respectively, depending on the nature of the offer in question. Summary of the main variations in the year. Summary of the main changes during the fiscal year: Contractual assets (liabilities) Balance at December 31, 2020 7,288 Additions 8,800 Write-offs (13,761) Balance at December 31, 2021 2,327 The balances of contractual assets and liabilities are expected to be realized according to the table below: Schedule of balances of contractual assets and liabilities are expected to be realized 2022 2023 Contractual assets (liabilities) 3,685 (1,358) The Company in line with paragraph 121 of IFRS 15, is not presenting the effects of information on customer contracts with terms of duration of less than 1 year. |
Provision for legal and adminis
Provision for legal and administrative proceedings | 12 Months Ended |
Dec. 31, 2021 | |
Provision for legal and administrative proceedings | 24. Provision for legal and administrative proceedings The company is an integral part in judicial and administrative proceedings in the civil, labor, tax and regulatory spheres, which arise in the normal course of its business. The provision is constituted based on the opinions of the company's legal advisors and management, for amounts considered sufficient and adequate to cover losses and risks considered probable. Situations where losses are considered probable and possible are recorded and disclosure, respectively, by their updated values, and those in which losses are considered remote are not disclosed. The provision for judicial and administrative proceedings constituted, updated, is composed as follows: 2021 2020 Provision for judicial and administrative proceedings 960,881 886,947 Civil (a) 309,019 245,432 Labor (b) 192,132 213,026 Tax (c) 429,951 399,288 Regulatory (d) 29,779 29,201 The changes in the provision for judicial and administrative proceedings are summarized below: December 31, 2020 Additions, net of reversals Payment Currency update December 31, 2021 886,947 278,789 (316,804) 111,949 960,881 Civil (a) 245,432 175,715 (194,501) 82,373 309,019 Labor (b) 213,026 71,961 (98,730) 5,875 192,132 Tax (c) 399,288 31,078 (23,539) 23,124 429,951 Regulatory (d) 29,201 35 (34) 577 29,779 December 31, 2019 Balance company incorporated Additions, net of reversals Payment Currency update December 31, 2020 703,522 125,956 333,724 (413,634) 137,379 886,947 Civil (a) 208,202 4,501 224,416 (266,872) 75,185 245,432 Labor (b) 208,224 45,691 63,649 (138,899) 34,361 213,026 Tax (c) 254,833 75,646 48,897 (7,792) 27,704 399,288 Regulatory (d) 32,263 118 (3,238) (71) 129 29,201 The company is subject to several legal actions and administrative procedures proposed by consumers, suppliers, service providers and consumer protection agencies and treasury agencies, which deal with various matters that arise in the normal course of the entities' business. The main processes are summarized below: a. Civil proceedings a.1 Consumer lawsuits The company is a party in lawsuits related to various claims filed by consumers, in the judicial and administrative spheres. The aforementioned actions in the amount provisioned of R$ 150,881 139,429 a.2 Consumer Protection Agencies TIM is a party to legal and administrative lawsuits filed by the Public Prosecutor's Office, Procon and other consumer protection agencies, arising from consumer complaints, in which, and among other topics, discusses: (i) alleged failures in the provision of network services; (ii) questions of quality in service; (iii) alleged violations of the SAC [customer service hotline] decree; (iv) alleged contractual violations; (v) alleged misleading advertising and; (vi) discussion of the collection of loyalty fines, in cases of theft and theft of the device. The amounts involved are equivalent to R$ 116,985 51,713 a.3 Former trading partners TIM is a defendant in lawsuits proposed by former trade partners claiming, among others, amounts on the basis of alleged non-compliance with agreements. The amounts involved are equivalent to R$ 20,708 18,634 a.4 Other TIM is a defendant in other actions of essentially non-consumer objects proposed by the most diverse agents from those described above, in which, among others, it is discussed: (i) share subscription; (ii) claims for civil liability indemnification; (iii) alleged breach of contract and; (iv). The amounts involved are equivalent to R$ 20,089 33,682 a.5 Social and environmental and infrastructure The Company is a party to lawsuits involving various agents who discuss aspects related to licensing, among which environmental licensing and infrastructure licensing (installation/operation). The amounts involved and provisioned are equivalent to R$ 356 610 a.6 ANATEL The Company is a party to lawsuits in front of ANATEL, in which it is discussed: (i) debit related to the collection of 2% of revenues from Value - Added Services-VAS and interconnection; (ii) pro-rata inflation adjustment applied to the price proposal defined in the notice for the use of 4G frequencies and (iii) alleged non-compliance with service quality targets. No correspondent amount on December 31, 2021 (R$ 1,364 b. Labor lawsuits These are processes involving several labor claims filed by both former employees, in relation to matters such as salary differences, leveling, payments of variable compensation, additional legal and working hours, as well as by former employees of service providers, all of whom, taking advantage of the labor laws in force require it to keep the Company in compliance with labor obligations does not abide by contractors hired for that purpose. From the total of 1,314 1,873 192,132 213,026 c. Tax lawsuits 2021 2020 Federal Taxes 202,743 182,146 State Taxes 145,436 135,891 Municipal Taxes 7,626 5,633 TIM S.A. processes (Purchase price allocation) 74,146 75,618 429,951 399,288 The total recorded provision is substantially composed of the following processes whose indicated values are estimated by the indices established by the federal government for late taxes, being linked to the variation in the SELIC rate. Federal taxes The provision is substantially composed of the following processes: (i) The provision for TIM S.A. supports sixty-four proceedings, relating to questions involving the impact on operations of CIDE, CPMF, CSLL, IRRF, spontaneous denunciation of the fine in the payment of FUST and ancillary obligations. Of this total, the amounts involved in the legal proceedings that seek recognition of the right not to collect the CPMF allegedly incident on simultaneous transactions of purchase and sale of foreign currency and exchange of account ownership arising from corporate incorporation, whose provisioned values, updated, equal to R$ 8,510 8,355 15,149 14,771 (ii) The Company constituted a provision for a process aimed to collecting the pension contribution withheld at the rate of 11 39,554 38,584 (iii) Additionally, in the second quarter of 2019, the Company constituted the provision for the FUST process, which seeks the unconstitutionality and illegality of the collection of FUST (Telecommunications Services Universalization Fund). Lawsuit for the recognition of the right not to collect Fust, failing to include in its calculation base the revenues transferred by way of interconnection and EILD (Dedicated Line Industrial Exploitation), as well as the right not to suffer the retroactive collection of the differences determined due to not observing sum 7/2005 of ANATEL, in the amount of R$ 60,382 58,988 (iv) The company made a provision for federal compensation processes arising from a repurchase carried out in 2006, for which the documentary support was not robust enough after appraisals carried out. The provisioned and updated value is R$ 18,579 (R$ 5,313 on December 31, 2020). State Taxes The provision is substantially composed of the following processes: The provision of the TIM S.A. in support of ninety-one cases, among which the following stand out: (i) the amounts involved in the proceedings, that the question of the reversal of the amounts payable for the ICMS tax, as well as the supporting documentation for the verification of the loan are appropriate for a Company whose values are recorded up-to-date, amounting to R$ 41,352 36,491 5,291 5,135 16,216 15,751 16,374 14,912 22,183 Municipal Taxes It is also worth noting the amounts involved in the assessments that questions the withholding and collection of the ISS-source of third-party services without employment relationship, as well as the collection of its own ISS corresponding to services provided in co-billing PPA TIM S.A. There are tax lawsuits arising from the acquisition of former Intelig (current TIM S.A.) due to the former parent company of the TIM Participações group, which comprise the process of allocating the acquisition price of the former Intelig and amount to R$ 74,146 (R$ 75,618 as of December 31, 2020). d. Regulatory processes ANATEL initiated administrative proceedings against the company for: (i) non-compliance with certain quality indicators; (ii) non-compliance with other obligations derived from the terms of authorization and; (iii) non-compliance with the SMP and STFC regulations, among others. On December 31, 2021, the amount indicated for the procedures for the determination of non-compliance with obligations (“PADOs”), considering the inflation adjustment, classified with risk of probable loss is R$ 29,779 29,201 e. Judicial and administrative proceedings whose losses are assessed as possible The company has actions of a civil, labor, tax and regulatory nature involving risks of loss classified by its legal advisers and the administration as possible, for which there is no provision for legal and administrative proceedings constituted, and no adverse material effects are expected in the financial statements, according to the values presented below: 2021 2020 18,140,556 18,147,562 Civil (e. 1) 1,292,202 1,101,332 Labor and Social Security (e. 2) 392,035 340,801 Tax (e. 3) 16,309,439 16,586,353 Regulatory (e. 4) 146,880 119,076 Legal and administrative proceedings whose losses are assessed as possible and monitored by Management are disclosed at their updated values. The main actions with risk of loss classified as possible are described below: e.1. Civil 2021 2020 Consumer actions (e. 1. 1) 160,696 220,347 ANATEL (e.1.2) 258,683 223,066 Consumer protection bodies (e.1.3) 493,806 160,279 Former trading partners (e.1.4) 216,054 193,529 Environmental and infrastructure (e.1.5) 99,743 154,187 Other (e.1.6) 63,220 149,924 1,292,202 1,101,332 e. 1. 1 Actions filed by consumers They mainly refer to actions for alleged improper collection, cancellation of contract, quality of services, defects and failures in the delivery of devices and undue negative entry. e.1.2 ANATEL The Company is a party to lawsuits in front of ANATEL, in which it is discussed: (i) debit related to the collection of 2% of revenues from Value - Added Services-VAS and interconnection; (ii) pro-rata inflation adjustment applied to the price proposal defined in the notice for the use of 4G frequencies and (iii) alleged non-compliance with service quality targets. e.1.3 Consumer protection agencies TIM is a party to legal and administrative lawsuits filed by the Public Prosecutor's Office, Procon and other consumer protection agencies, arising from consumer complaints, in which, and among other topics, discusses: (i) alleged failures in the provision of network services; (i) alleged failure in the delivery of handsets; (iii) alleged non-compliance with state laws; (iv) hiring model and alleged improper charges of Value-Added Services-VAS; (v) alleged violations of the SAC decree; (vi) alleged contractual violations; and (vii) blocking of data. e.1.4 Former Trading Partners TIM is a defendant in actions proposed by several former trading partners in which are claimed, among others, values based on alleged contractual defaults. 1. 5 Social and environmental and infrastructure The Company is a party to lawsuits involving various agents that discuss aspects related to (1) environmental licensing and structure licensing (installation/operation) and (2) (i) electromagnetic radiation emitted by Telecom structures; (ii) renewal of land leases for site installation; (iii) dumping on leased land for site installation; (iv) presentation of registering data, among others. e.1.6 Other TIM is a defendant in other actions of essentially non-consumer objects proposed by the most diverse agents from those described above, in which, among others, it is discussed: ; (ii) amounts supposedly due as a result of share subscription; (iii) civil liability claims; (iv) alleged breach of contract. e.2. Labor and Social Security e.2.1. Social Security TIM S.A received a Tax Notice for the Release of the Debt relating to the alleged irregularity in the payment of social security contributions relating to the payment of Profit Sharing, in the likely restated amount of R$ 23,786 10,467 85,720 22,829 e.2.2. Labor There are 3,067 3,038 306,315 317,971 The other values are related to labor processes of various requests filed by former employees of their own and third-party companies. e.3. Tax 2021 2020 16,309,439 16,586,353 Federal taxes (e. 3.1) 3,026,326 4,268,212 State taxes (e. 3. 2) 8,782,114 8,562,352 Municipal taxes (e. 3. 3) 1,234,618 740,813 FUST, FUNTTEL e EBC (e.3.4) 3,266,381 3,014,976 The values presented are corrected, in an estimated way, based on the SELIC index. The historical amount involved is R$ 12,133,168 11,976,959 e.3.1. Federal taxes The total amount assessed against the TIM Group in relation to federal taxes is R$ 3,026,326 4,268,212 a. Allegation of alleged incorrect use of tax credits for carrying out a reverse merger, amortization of goodwill paid on the acquisition of cell phone companies, deduction of goodwill amortization expenses, exclusion of goodwill reversal, other reflections and disallowances of compensations and deductions paid by estimate, allegedly improper use of the SUDENE benefit due to lack of formalization of the benefit at the Internal Revenue Service (RFB), and failure to pay IRPJ and CSLL due by estimate. The amount involved is R$ 1,467,409 2,715,670 b. Compensation method for tax losses and negative bases. The amount involved is R$ 231,810 193,181 c. Collection of CSLL on currency changes arising from swap transactions accounted for by the cash regime. The amount involved is R$ 69,124 67,572 d. Collection of IRRF [withholding income tax] on income of residents abroad, including those remitted by way of international roaming and payment to unidentified beneficiaries, as well as the collection of CIDE on payment of royalties on remittances abroad, including remittances by way of international roaming. The amount involved is R$ 268,170 259,088 e. Collection of IRPJ, PIS/COFINS and CSLL debits arising from non-homologation or partial homologation of compensations made by the company from credits of withholding taxes on financial investments and negative balance of IRPJ. The amount involved is R$ 410,662 399,691 e.3.2. State Taxes The total assessed amount against TIM Group regarding state taxes on December 31, 2021 is R$ 8,782,114 8,562,352 a. Non-inclusion in the ICMS calculation basis of unconditional discounts offered to customers, as well as a fine for the alleged failure to comply with a related accessory obligation, including for the failure to present the 60i record of the SINTEGRA file. The amount involved is R$ 1,140,553 1,128,741 b. Use of tax benefit (program for the promotion of integrated and sustainable economic development of the Federal District - PRÓ-DF) granted by the taxing entity itself, but later declared unconstitutional, as well as alleged improper credit of ICMS arising from the interstate purchase of goods with tax benefit granted in the state of origin. The amount involved is R$ 356,251 492,935 c. Credit reversal and extemporaneous credit related to acquisitions of permanent assets. The amount involved for TIM S.A. is R$ 654,011 608,316 d. Credits and chargebacks of ICMS, as well as the identification and documentary support of values and information released in customer accounts, such as tax rates and credits granted in anticipation of future surcharges (special credit), as well as credits related to tax substitution operations and exempt and untaxed operations. On December 31, 2021, the involved amount is R$ 3,449,439 3,356,501 e. Use of credit in the acquisition of electricity directly employed in the production process of companies. The amount involved is R$ 138,242 136,286 f. Alleged conflict between the information contained in ancillary obligations and the collection of the tax, as well as specific questioning of fine for non-compliance with ancillary obligations. The amount involved is R$ 727,057 698,673 g. Alleged lack of collection of ICMS due to the gloss of chargebacks related to the prepaid service, improper credit of ICMS in the outputs of goods allegedly benefited with reduction of the calculation base, as well as an allegation of improper non-inclusion of Value-Added Services (VAS) of the ICMS calculation base. The amount involved is R$ 547,575 249,271 h. Launch of credits related to the return of mobile devices lent on loan. The amount involved is R$ 116,700 197,521 i. Collection of ICMS related to subscription services and their alleged improper non-inclusion in the ICMS calculation base due to their nature. The amount involved is R$ 286,519 260,447 e.3.3. Municipal Taxes The total assessed amount against TIM Group regarding municipal taxes with possible risk is R$ 1,234,618 740,813 a. Collection of ISS, as well as the punitive fine for the absence of the supposed tax due, on several revenue accounts of the company. The amount involved is R$ 618,343 150,023 b. Collection of ISS on importation of services or services performed in other municipalities. The amount involved is R$ 399,141 385,536 c. Constitutionality of the collection of the functioning supervision fee (TFF - Taxa de Fiscalização do Funcionamento 137,944 126,159 e.3.4. FUST and FUNTTEL The total amount charged against the TIM Group in relation to the contributions to FUST and FUNTTEL with a possible risk rating is R$ 3,266,381 3,014,976 e.4. Regulatory ANATEL filed administrative proceedings against the Company for: (i) non-compliance with certain quality indicators; (ii) non-compliance with other obligations derived from the terms of authorization and; (iii) non-compliance with the SMP and STFC regulations, among others. On December 31, 2021, the value indicated for the PADOs (procedure for determining non-compliance with obligations), considering the inflation adjustment, classified with possible risk was R$ 120,218 119,076 On August 22, 2019, ANATEL's Board of Directors unanimously approved TIM's conduct adjustment term (TAC), which had been negotiated since June 2018 with the regulator. The agreement covers a sanctions reference value of R$ 627 additional commitment to bring mobile broadband, through the 4G network, to 366 municipalities with less than 30 thousand inhabitants thus reaching more than 3.4 million people. The new infrastructure will be implemented in three years - more than 80% in the first two years – being guaranteed by the company the sharing regime with the other providers. On June 19, 2020, the Board of Directors of the company approved the said TAC after final deliberation of the regulator and the signing of the term took place on June 25. The agreement covers sanctions totaling a value of approximately R$ 639 million, updated, which will be filed according to commitments represented in actions to improve quality and customer experience as well as increase network infrastructure in more than 2,000 locations. During the fourth quarter of 2021, the Company carried out all the activities planned for the strict compliance with the Conduct Adjustment Instrument (TAC) 001/2020 entered into with Anatel, aiming at achieving the goals associated with the TAC for the second year. With the closing of the 1st TAC Year, inspection activities by the Agency are taking place in relation to commitments due and they were recognized as met by Anatel: Additional commitments; Internal controls; Complaints Index; General quality index; Numbering; Interconnection and; Impediment. The Company will continue fully implementing the internal monitoring mechanisms through the quarterly report on the evolution of the schedules by the Governance Office in Management and Board of Directors. So far, the Company has been complying with the TAC implementation schedule without the need for any additional obligations. By obtaining the extension of the term of the authorizations to use the radio frequencies associated with the SMP, TIM S.A. becomes liable for the contractual burden on the net revenue arising from the service plans marketed under each authorization. However, since 2011 ANATEL began to include in the basis of calculation of said burden also the revenues obtained with interconnection, and from 2012, the revenues obtained with Value-Added Services. In the company's opinion, the inclusion of such revenues is improper because it is not expressly provided for in the terms of original authorizations, so the collections received are discussed in the administrative and/or judicial sphere. |
Shareholders' equity
Shareholders' equity | 12 Months Ended |
Dec. 31, 2021 | |
Shareholders' equity | 25. Shareholders' equity a. Share capital The share capital is recorded by the amount effectively raised from the shareholders, net of the costs directly linked to the funding process. The subscribed and paid-up share capital on December 31, 2021, is represented by 2,420,804,398 2,420,804,398 The Company is authorized to increase its share capital up to the limit of 4,450,000,000 As of July 2, 2020, the Board of Directors of the Company approved the reverse split of all of the 42,296,789,606 100 shares to form 1 common stock 422,967,896 Following the merger mentioned in note 1, is checked for the condition precedent, the shareholders of TIM Participações received 1 common share issued by the TIM S.A. for each 1 common share issued by TIM Participações, of ownership, and that, assuming the maintenance of the number of shares issued by TIM Participações, ex-treasury shares, resulting in the issuance of a 2,420,447,019 On August 31, 2020, the increase in the share capital of the company in the amount of R$ 1,719defined in the incorporation protocol was approved at an ordinary and Extraordinary General Meeting, which was represented by R$ 13,477,891 On September 28, 2020, at a meeting of the Board of directors, and the directors of the Company has become aware of the payments relating to the awards of the 2018 and 2019, based on the transfer of shares held in treasury stock to the beneficiaries as provided for in the Plans and pursuant to the terms of the share buy-back Programme as approved by the Board of Directors of TIM Participações S.A. (merged into TIM S.A.) in the meeting held on the 29th of July 2020, in the amount of 357,379 b. Capital reserves The use of capital reserves complies with the precepts of art. 200 of Law 6404/76, which provides for Joint-Stock Companies. This reserve is composed as follows: Schedule of reserves 2021 2020 Capital reserves 401,806 397,183 Special Reserve of goodwill 353,604 353,604 Long-term incentive plan 48,202 43,579 b.1 Special Reserve of goodwill The special reserve of goodwill was constituted from the incorporation of the net assets of the former parent company Tim Participações S.A. (note 1) b.2 Long-term incentive plan The balances recorded under these items represent the Company's expenses related to the long-term incentive program granted to employees (note 26). c. Profit reserves c.1 Legal Reserve It refers to the allocation of 5% of the net profit for the year ended December 31 of each year, until the Reserve equals 20% of the share capital, excluding from 2018 the balance allocated to the reserve of tax incentives. In addition, the company may cease to constitute the legal reserve when this, added to the capital reserves, exceeds 30% of the share capital. This Reserve may only be used to increase capital or offset accumulated losses. c. 2 Reserve for expansion The allocation to this reserve is foreseen in Paragraph 2 of art. 46 of the bylaws of the company and is aimed at the expansion of social business. The balance of profit that is not compulsorily allocated to other reserves and is not intended for the payment of dividends is allocated to this reserve, which may not exceed 80% of the share capital. Reaching this limit, it will be up to the General Meeting to decide on the balance, distributing it to shareholders or increasing capital. c.3 Tax Benefit Reserve The company enjoys tax benefits that provide for restrictions on the distribution of profits. According to the legislation that establishes these tax benefits, the amount of tax that is no longer paid due to exemptions and reductions in the tax burden may not be distributed to members and will constitute a reserve of tax incentive of the legal entity. Such a reserve may only be used to absorb losses or increase the share capital. As of December 31, 2021, the cumulative value of the benefits enjoyed by the Company amounts to R$ 1,958,301 1,781,560 The said tax benefit basically corresponds to the reduction of the Corporate Income Tax (IRPJ) incident on the profit of the exploitation calculated in the units encouraged. The Company operates in the area of the defunct Superintendence of development of the Amazon (SUDENE / SUDAM), being the tax incentive awards granted by state of the Federation, for a period of 10 years, subject to renewal. d. Dividends Dividends are calculated in conformity with the bylaws and the Brazilian Corporate Law. According to its latest bylaws, approved on August 31, 2020, the company must distribute as a mandatory dividend each year ending December 31, provided that there are amounts available for distribution, an amount equivalent to 25 As provided in the company's bylaws, unclaimed dividends within 3 years will revert to the company. As of December 31, 2021, and 2020, dividends and interest on shareholders' equity were calculated as follows: Schedule of dividends calculation 2021 2020 Net profit for the year 2,957,174 1,828,254 (-) non-distributable tax incentives (176,741) (169,540) (-) Constitution of legal reserve (139,021) (83,707) Adjusted Net Profit 2,641,412 1,575,007 Minimum dividends calculated on the basis of 25% of adjusted profit 660,353 397,752 Breakdown of dividends payable interest on equity: Interest on shareholders' equity 1,047,500 1,083,000 Total dividends and interest on shareholders' equity distributed and proposed 1,047,500 1,083,000 Withholding income tax (IRRF) on interest on shareholders' equity (142,977) (162,450) Total dividends and interest on shareholders’ equity, net 904,523 920,550 Interest on Shareholders' Equity paid and/or payable is accounted for against financial expenses which, for the purposes of presenting the quarterly information, are reclassified and disclosed as allocation of net profit for the year, in changes in shareholders' equity. During 2021, the amount of R$ 1,047,500 Interest on shareholders’ equity Approval Payment R$ 350,000 06/09/2021 07/20/2021 R$ 137,500 09/24/2021 10/27/2021 R$ 560,000 12/15/2021 01/25/2022 The balance on December 31, 2021 of the item “dividends and interest on shareholders' equity payable” totaling R$ 533,580 49,955 43,026 483,625 As set forth in the Law 6404/76 and the Bylaws of the Company, unclaimed dividends - as established in the Joint Stock Company Law, dividends and Interest on Shareholders' Equity declared and unclaimed by shareholders within 3 years, are reverted to shareholders' equity at the time of its prescription and allocated to a supplementary reserve to expand businesses. For the statement of cash flows, Interest on Shareholders' Equity and dividends paid to its shareholders are being allocated in the group of “financing activities.” |
Long-Term Incentive Plan
Long-Term Incentive Plan | 12 Months Ended |
Dec. 31, 2021 | |
Long-Term Incentive Plan | 26. Long-Term Incentive Plan 2011-2013 Plan, 2014-2016 Plan, 2018-2020 Plan and 2021-2023 Plan On August 5, 2011, April 10, 2014, April 19, 2018 and March 30, 2021, they were approved by the General Meeting of shareholders of TIM S.A. (TIM Participações S.A. before the merger by TIM S.A. on August 31, 2020), long-term incentive plans; “2011-2013 Plan”, “2014-2016 Plan”, “2018-2020 Plan” and “2021-2023 Plan” respectively, granted to senior directors and to those who occupy the position of key positions in the Company. The 2011-2013 and 2014-2016 Plans addresses the granting of stock options, while the 2018-2020 and 2021-2023 Plans provides for the granting of shares (performance shares and/or restricted shares). The exercise of the options of the 2011-2013 Plan is conditioned on the achievement of specific performance targets that could prevent the exercise of options, while when in the exercise of the options of the 2014-2016 Plan, the achievement of goals may affect only the acquisition price of the shares. The strike price is calculated by applying a plus or minus adjustment to the Base price of the share as a result of shareholder performance, taking into account the criteria provided for in each plan. The 2018-2020 and 2021-2023 Plans propose to grant participants shares issued by the Company, subject to the participant’s permanence in the Company (achievement of specific goals). The number of shares may vary, for more or for less, as a result of the performance and possibly of the dividend award, considering the criteria provided for in each Grant. The term of validity of the options of the 2011-2013 and 2014-2016 plans is 6 years and TIM S.A. has no legal or non-formalized obligation to repurchase or settle the options in cash. For the 2018-2020 and 2021-2023 plan, the term of validity has the same periodicity of 3 years related to its vesting. In turn, the new Plans, in addition to considering the transfer of shares, also provides for the possibility of making payment to participants of the equivalent amount in cash. The total amount of the expense was calculated considering the fair value of the options and the value of the shares and is recognized in the results over the vesting period. Schedule of variations in quantity of options Stock Options Program Table Grant date Options granted Expiry date Base Price Balance at the beginning of the year Granted during the year Exercise during exercise Expired during exercise Overdue during the year Balance at the end of the year 2014-2016 Plan – 3rd Grant 3,922,204 Nov 2022 R$ 8.10 295,063 - (182,511) - - 112,552 2014-2016 Plan – 2nd Grant 3,355,229 Oct 2021 R$ 8.45 21,771 - (21,771) - - 0 Plan 2014-2016-1st Grant 1,687,686 Sep 2020 R$ 13.42 - - - - - - 2011-2013 Plan – 3rd Grant 3,072,418 July 2019 R$ 8.13 - - - - - - 2011-2013 Plan – 2nd Grant 2,661,752 Sep 2018 R$ 8.96 - - - - - - 2011-2013 Plan – 1st Grant 2,833,595 Aug 2017 R$ 8.84 - - - - - - Total 17,532,884 316,834 - (204,282) - - 112,552 Weighted average price of the balance of grants R$ 8.10 Stock Program Table (Performance Shares and Restricted Shares) Identification of grant: Shares granted Expiry date Grant Price Balance at the beginning of the year Granted during the year Transferred during the year* Paid in cash* Canceled during the year Balance at the end of the year Volume Vested Performance change Additional Dividends Volume Vested Performance change Additional dividends 2021-2023 Plan 3,431,610 May 2024 R$ 12.95 - 3,431,610 - - - - - - (311,876) 3,119,734 2018-2020 Plan 796,054 Apr 2023 R$ 14.40 796,054 - (206,578) (51,634) (8,933) - - - (70,378) 519098 2018-2020 Plan 930,662 July 2022 R$ 11.28 687,895 - (207,859) (78,111) (23,252) - - - (53,006) 427,030 2018-2020 Plan 849,932 Apr 2021 R$ 14.41 199,594 - (187,039) (42,854) (22,250) (9,101) (2,305) (1,094) (3,454) - Total 6,008,258 1,683,543 3,431,610 (601,476) (172,599) (54,435) (9,101) (2,305) (1,094) (438,714) 4,065,862 Weighted average price of the balance of grants R$ 12.96 Schedule of significant data included in model The significant data included in the model, for the Stock Option Grants, was as follows: Grant date Base price - weighted average share in the period of measurement of the grant Volatility Expected life of the option Annual interest rate without risk 2011 Grant R$ 8.84 51.73% p.a. 6 years 11.94 2012 Grant R$ 8.96 50.46% p.a. 6 years 8.89 2013 Grant R$ 8.13 48.45% p.a. 6 years 10.66 2014 Grant R$ 13.42 44.60% p.a. 6 years 10.66 2015 Grant R$ 8.45 35.50% p.a. 6 years 16.10 2016 Grant R$ 8.10 36.70% p.a. 6 years 11.73 Note: Significant data is characteristic of an option-based plan, considering the use of fair value as the appropriate method for calculating expenses with option remuneration. The base price of the share of each share was calculated using the weighted averages of TIM S.A.’s share price. (TIM Participações S.A. before the merger by TIM S.A. on August 31, 2020), considering the following periods: · 2011-2013 Plan - 1st Grant · 2011–2013 Plan – 2nd Grant · 2011–2013 Plan – 3rd Grant · 2014-2016 Plan – 1st Grant · 2014-2016 Plan – 2nd Grant · 2014-2016 Plan – 3rd Grant · 2018-2020 Plan – 1st Grant · 2018-2020 Plan – 2nd Grant · 2018-2020 Plan – 3rd Grant · 2021-2023 Plan - 1st Grant On December 31, 2021, expenses pegged to these long-term benefit plans totaled R$ 22,212 9,999 |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2021 | |
Revenue | 27. Revenue Revenue from services rendered The principal service revenue derives from monthly subscription, the provision of separate voice, SMS and data services, and user packages combining these services, roaming charges and interconnection revenue. The revenue is recognized as the services are used, net of sales taxes and discounts granted on services. This revenue is recognized only when the amount of services rendered can be estimated reliably. Revenues are recognized monthly, through billing, and revenues to be billed between the billing date and the end of the month (unbilled) are identified, processed, and recognized in the month in which the service was provided. These non-billed revenues are recorded on an estimated basis, which takes into account consumption data, number of days elapsed since the last billing date. Interconnection traffic and roaming revenue are recorded separately, without offsetting the amounts owed to other telecom operators (the latter are accounted for as operating costs). The minutes not used by customers and/or reload credits in the possession of commercial partners regarding the prepaid service system are recorded as deferred revenue and allocated to income when these services are actually used by customers. The net service revenue item also includes revenue from new partnership agreements, and the amount of revenue recognized in the year ended December 31, 2021 is R$ 119,457 Arbitration Procedure No. 28/2021/SEC8 was filed before the Arbitration and Mediation Center of the Brazil-Canada Chamber of Commerce (“ CCBC Arbitration Procedure Defendants Revenues from sales of goods Revenues from sales of goods (telephones, mini-modems, tablets and other equipment) are recognized when the performance obligations associated with the contract are transferred to the buyer. Revenues from sales of devices to trading partners are accounted for at the time of their physical delivery to the partner, net of discounts, and not at the time of sale to the end customer, since the Company has no control over the good sold. Contract identification The Company monitors commercial contracts in order to identify the main contractual clauses and other elements present in the contracts that could be relevant in the application of the accounting rule IFRS 15 – Revenue from Contracts with Customers. Identification of the performance obligation Based on the review of its contracts, the Company mainly verified the existence of the following performance obligations: (i) sale of equipment; and e (ii) provision of mobile, fixed and internet telephony services. Thus, the Company started to recognize revenues when (or as) the Company meets the performance obligation by transferring the asset or service promised to the client; and the asset is considered transferred when (or as) the client obtains control of that asset. Determining and Allocating the Transaction Price to the Performance Obligation The Company understands that its commercial packages that combine services and sale of cellular handsets with discounts. In accordance with IFRS 15, the Company is required to perform the discount allocation and recognize revenues related to each performance obligation based on their standalone selling prices. Cost to obtain contract All incremental costs related to obtaining a contract (sales commissions and other costs of acquisition from third parties) are recorded as prepaid expenses and (as described in note 11) amortized over the same period as the revenue associated with this asset. Similarly, certain contract compliance costs are also deferred to the extent that they relate to performance obligations under the customer agreement, i.e. when the customer obtains control over the asset. Schedule of revenue 2021 2020 2019 Net revenue 18,058,027 17,267,812 17,377,194 Gross revenue 25,357,429 24,346,101 25,182,831 Service revenue 24,264,246 23,279,423 23,820,343 Service revenue-Mobile 22,433,225 21,522,135 22,145,033 Service revenue - Landline 1,831,021 1,757,288 1,675,310 Goods sold 1,093,183 1,066,678 1,362,488 Deductions from gross revenue (7,299,402) (7,078,289) (7,805,637) Taxes incidents (4,679,722) (4,534,582) (4,939,980) Discounts granted (2,610,388) (2,531,920) (2,843,670) Returns and other (9,292) (11,787) (21,987) |
Operating costs and expenses
Operating costs and expenses | 12 Months Ended |
Dec. 31, 2021 | |
Operating costs and expenses | 28. Operating costs and expenses Schedule of operating cost and expences 2021 2020 Cost of services rendered and goods sold Selling expenses General and administrative expenses Total Cost of services rendered and goods sold Selling expenses General and administrative expenses Total (8,443,023) (4,621,788) (1,723,384) (14,788,195) (7,996,615) (4,443,027) (1,673,290) (14,112,932) Personal (62,214) (676,479) (387,735) (1,126,428) (58,024) (632,231) (321,967) (1,012,222) Third party services (560,039) (1,763,360) (668,641) (2,992,040) (587,835) (1,743,644) (538,584) (2,870,063) Interconnection and means of connection (1,840,139) - - (1,840,139) (1,672,655) - - (1,672,655) Depreciation and amortization (4,847,995) (265,565) (578,136) (5,691,696) (4,569,064) (247,666) (710,282) (5,527,012) Taxes, fees and contributions (34,732) (777,819) (29,388) (841,939) (28,675) (761,152) (23,809) (813,636) Rent and insurance (362,171) (109,781) (20,082) (492,034) (316,650) (107,550) (15,753) (439,953) Cost of goods sold (731,007) - - (731,007) (756,060) - - (756,060) Publicity and advertising - (459,811) - (459,811) - (377,184) - (377,184) Expected credit losses of trade accounts receivable - (544,642) - (544,642) - (552,817) - (552,817) Other (4,726) (24,331) (39,402) (68,459) (7,652) (20,783) (62,895) (91,330) 2019 Cost of services provided and goods sold Seling expenses General and administrative expenses Total (7,433,731) (4,986,289) (1,717,859) (14,137,879) Personnel (53,392) (624,353) (392,984) (1,070,729) Third-party services (569,242) (2,041,646) (512,643) (3,123,531) Interconnection and means of connection (1,419,464) - - (1,419,464) Depreciation and amortization (4,132,223) (256,898) (739,860) (5,128,981) Taxes, fees and contributions (32,120) (817,369) (18,846) (868,335) Rent and insurance (291,302) (121,795) (20,590) (433,687) Cost of goods sold (931,818) - - (931,818) Publicity and advertising - (355,234) - (355,234) Expected credit losses of trade accounts receivable - (748,291) - (748,291) Other (4,170) (20,703) (32,936) (57,809) The company makes contributions to public or private pension insurance plans on a mandatory, contractual or voluntary basis while the employee is on the staff of the company. Such plans do not bring any additional obligations to the company. If the employee ceases to be part of the company's staff in the period necessary to have the right to withdraw contributions made by sponsors, the amounts to which the employee is no longer entitled and which may represent a reduction in the company's future contributions to active employees, or a cash refund of these amounts, are released as assets. |
Other income (expenses), net
Other income (expenses), net | 12 Months Ended |
Dec. 31, 2021 | |
Other Income Expenses Net | |
Other income (expenses), net | 29. Other income (expenses), net Schedule of other income (expenses) 2021 2020 2019 Income Income from grant, net 13,548 17,427 21,572 Fines on telecommunications services 58,793 37,490 50,499 Revenue on disposal of assets (ii) 2,711,535 5,375 2,214 PIS/COFINS credits (i) - - 1,795,000 Other income 65,482 68,651 83,558 Total Revenue 2,849,358 128,943 1,952,843 Expenses FUST/FUNTTEL (iii) (134,962) (133,378) (137,169) Taxes, fees and contributions (2,274) (10,316) (4,024) Provision for legal and administrative proceedings, net of reversal (248,987) (290,789) (466,460) Expense on disposal of assets (ii) (1,942,791) (13,538) (7,055) Other expenses (22,573) (32,776) (62,593) Total Expenses (2,351,587) (480,797) (677,301) Other income (expenses), net 497,771 (351,854) 1,275,542 (i) The change refers to the update of claims arising from judicial proceedings with a final decision passed in favor of the company in higher courts, in 2019, which discussed the exclusion of ICMS from calculation basis of PIS and COFINS contributions. The amount of R$ 1,795 million was recorded under Other income in 2019 (note 9). (ii) Represents the revenue from the sale of 51% equity interest in I-Systems (formerly FiberCo) to IHS, in the amount of R$ 2,709,251, which is composed of the (secondary) cash paid to TIM S.A. and the fair value of the minority interest of 49% that remained with TIM S.A. In expenses, the amount of 1,927,014 is represented by the write-off of the net assets written-off at TIM S.A. and paid-in as share capital at I-Systems, in addition to the write-off of goodwill and deferred income tax related to goodwill due to the sale of 51% of I -Systems (formerly FiberCo). The gain on this transaction before income tax and social contribution is R$ 782,237. See note 1. (iii) Representing the expenses incurred with contributions on the various telecommunications revenues due to ANATEL, according to current legislation.S |
Financial income
Financial income | 12 Months Ended |
Dec. 31, 2021 | |
Financial income | 30. Financial income Schedule of financial income 2021 2020 2019 Financial income 1,091,748 438,598 1,430,171 Interest on financial investments 339,681 82,512 88,224 Interest received from clients 28,427 28,686 37,233 Swap interest 203,852 32,955 15,536 Interest on lease 24,788 19,924 20,528 Inflation adjustment (i) 208,029 116,441 1,263,793 Other derivatives (ii) 285,009 155,165 - Other income 1,962 2,915 4,857 (i) A substantial part is related to the monetary restatement on judicial and administrative proceedings and judicial deposits. (ii) It is the difference between the market cost and value of the share subscription option related to Banco C6 partnership; therefore, the mark-to-market value of these derivatives includes a gain of R$ 285 million referring to the company’s stock option obtained through achievement of contractual target defined in an operational partnership started in 2020. The market value was calculated based on information available in the last investment transaction carried out by the partner and disclosed in the market. The disclosures of this derivative financial instrument are detailed in note 37, which was measured at fair value, and will subsequently be measured in the Company’s income, also considering the risks related to arbitration disclosed in note 27. |
Financial expenses
Financial expenses | 12 Months Ended |
Dec. 31, 2021 | |
Financial expenses | 31. Financial expenses Schedule of financial expenses 2021 2020 2019 Financial expenses (1,745,213) (1,242,255) (1,408,053) Interest on loans and financing (99,183) (70,400) (116,735) Interest on taxes and fees (61,745) (43,616) (28,396) Swap interest (352,029) (45,970) (24,604) Interest on lease (845,033) (766,263) (821,463) Inflation adjustment (i) (247,200) (161,892) (191,309) Discounts granted (52,509) (33,725) (36,047) Other expenses (87,514) (120,389) (189,499) (i) Substantial portion related to the inflation adjustment of lawsuits, in the amount of R$ 111,949 - see note 24 (R$ 137,379 as of December 31, 2020). |
Foreign exchange variations, ne
Foreign exchange variations, net | 12 Months Ended |
Dec. 31, 2021 | |
Foreign Exchange Variations Net | |
Foreign exchange variations, net | 32. Foreign exchange variations, net Schedule of foreign exchange variations 2021 2020 2019 Revenues Loans and financing (ii) 215,262 - 22,494 Suppliers 13,190 15,981 9,004 Swap (i) 275,836 305,012 40,742 Other 16,640 43,155 15,952 520,928 364,148 88,192 Expenses Loans and financing (ii) (275,724) (305,010) (40,715) Suppliers (20,061) (46,112) (13,201) Swap (i) (215,262) - (22,493) Other (9,222) (19,991) (12,691) (520,269) (371,113) (89,100) Foreign exchange variations, net 659 (6,965) (908) (i) Referring to derivative financial instruments to mitigate risks of foreign exchange variations related to foreign currency debts (note 37). (ii) It mainly refers to foreign exchange variation on loans and financing in foreign currency. |
Expense with current and deferr
Expense with current and deferred income tax and social contribution | 12 Months Ended |
Dec. 31, 2021 | |
Expense with current and deferred income tax and social contribution | 33. Expense with current and deferred income tax and social contribution Schedule of income tax and social contribution 2021 2020 2019 Current income tax and social contribution Income tax for the period 9,697 (684,099) (155,521) Social contribution for the period 26,538 (232,671) (58,905) Tax incentive – SUDENE/SUDAM (i) 167,118 164,442 156,594 Current income tax 203,353 (752,328) (57,832) Deferred income tax and social contribution Deferred income tax (255,972) 453,127 (625,516) Deferred social contribution (93,432) 144,722 (225,186) Deferred income tax (349,404) 597,849 (850,702) Provision for income tax and social contribution contingencies - (9,671) (5,406) Deferred income tax, net of tax (349,404) 588,178 (856,108) Income tax and social contribution (146,051) (164,150) (913,940) The reconciliation of income tax expense and social contribution calculated by applying the combined tax rates with the values reflected in the result is shown below: 2021 2020 2019 Income before income tax and social contribution 3,103,225 1,992,404 4,536,067 Combined tax rate 34 34 34 Combined tax rate on income tax and social contribution (1,055,097) (677,417) (1,542,263) (Additions) / deletions: Permanent additions and exclusions: Non-taxable revenues 135,465 11,370 7,790 Non-deductible expenses for tax purposes (53,505) (42,329) (18,748) Tax incentive – SUDENE/SUDAM (i) 167,118 164,442 194,161 Tax benefit related to interest on shareholders’ equity 356,150 368,220 338,449 Sale I – Systems (formerly FiberCo) (ii) (335,935) - - IR/CS credit on Selic related do tax overpayment (iii) 534,804 - - Reversal of Provision for IR/CS - TIM Nordeste (iv) 87,565 - - Other amounts 17,384 11,564 106,670 Income before income tax 909,046 513,267 628,322 Income tax and social contribution recorded in income for the period (146,051) (164,150) (913,941) Effective rate 4.71% 8.24% 20.15% (i) As mentioned in note 25 c.3, in order for investment grants not to be computed in taxable income, they must be recorded as a tax incentive reserve, which can only be used to absorb losses or be incorporated into the share capital. TIM S.A. has tax benefits that fall under these rules. (ii) Refers to deferred taxes on goodwill written-off, according to the sale transaction described in Note 1, which took place in November 2021 between TIM S.A. and IHS. See note 15.d. (iii) As mentioned in note 9, in September 2021, the Federal Supreme Court (STF), with general repercussions, established an understanding for the non-levy of Corporate Income Tax (IRPJ) and Social Contribution (CSLL) on the monetary restatement using the SELIC rate in cases of undue payment. Although the aforementioned decision is still pending publication, as well as the specific TIM lawsuit is still pending judgment, TIM recorded its best estimate to date, in the amount of R$ 534 million, since the likelihood of a favorable outcome for the Company becomes probable. (iv) In the second quarter of 2021, there was a positive impact of R$ 87 million arising from the write-off of assets and reversal of the provision for income tax and social contribution, set up in 2009, due to the partial success in an administrative proceeding related to the merger of the company TIM Nordeste by TIM Celular. |
Earnings per share
Earnings per share | 12 Months Ended |
Dec. 31, 2021 | |
Earnings per share | 34 . Earnings per share The number of TIM.SA shares before the corporate reorganization was 2,420,447,019 (a) Basic earnings per share are calculated by dividing profit attributable to Company’s shareholders by the weighted average number of shares issued during the year. 2021 2020 2019 Income attributable to the shareholders of the company 2,957,174 1,828,254 3,622,127 Weighted average number of common shares issued (thousands) 2,420,314 2,420,804 2,420,481 Basic earnings per share (expressed in R$) 1.22 0.76 1.50 (b) Diluted earnings per share are calculated by adjusting the weighted average amount of shares outstanding to assume the conversion of all potential dilutive shares. 2021 2020 2019 Income attributable to the shareholders of the company 2,957,174 1,828,254 3,622,127 Weighted average number of common shares issued (thousands) 2,420,638 2,421,065 2,421,018 Diluted earnings per share (in R$) 1.22 0.76 1.50 The calculation of diluted earnings per share considered 324 thousands (261 thousands on December 31, 2020) shares related to the long-term incentive plan, as mentioned in note 26. |
Balances and transactions with
Balances and transactions with related parties | 12 Months Ended |
Dec. 31, 2021 | |
Balances and transactions with related parties | 35. Balances and transactions with related parties The balances of transactions with Telecom Italia Group companies are as follows: Assets 2021 2020 Telecom Italia Sparkle (i) 1,414 1,630 Gruppo Havas (vi) 83,613 - TI Sparkle (iii) 5,084 1,915 TIM Brasil (vii) 23,069 6,129 Telecom Italia S.p.A. (ii) 1,502 370 I Systems (ix ) 5,879 - Other 674 674 Total 121,235 10,718 Liabilities 2021 2020 Telecom Italia S.p.A. (ii) 71,288 75,317 Telecom Italia Sparkle (i) 3,689 10,576 TI Sparkle (iii) 10,205 7,333 TIM Brasil (iv) 6,558 6,145 Vivendi Group (v) 1,238 1,150 Gruppo Havas (vi) 19,794 24,068 I Systems ( viii) 31,596 - Other 4,585 2,797 Total 148,953 127,386 Revenue 2021 2020 2019 Telecom Italia S.p.A. (ii) 1,112 1,197 775 Telecom Italia Sparkle (i) 353 2,994 5,371 TI Sparkle (iii) 3,347 4,059 2,052 I Systems (ix) 5,881 - - Total 10,693 8,250 8,198 Cost / Expense 2021 2020 2019 Telecom Italia S.p.A. (ii) 105,137 110,407 93,188 Telecom Italia Sparkle (i) 19,219 27,485 24,914 TI Sparkle (iii) 20,533 19,923 18,700 Vivendi Group (v) 1,271 1,207 1,386 Gruppo Havas (vi) 206,349 207,682 264,318 I Systems ( viii) 31,596 - - Other 22,597 22,308 18,713 Total 406,702 389,012 421,219 (i) amounts refer to roaming wholesale (ii) The amounts refer to international roaming, technical assistance and value added services – VAS and licensing for the use of a registered trademark, granting TIM. S.A. the right to use the “TIM” brand upon payment of royalties in the amount of 0.5% of the company’s net revenue, with payment made on a quarterly basis. (iii) Values refer to link (iv) Mainly refer to judicial deposits made on account of labor causes and transfers of employees. (v) the values refer to Value Added Services-VAS. (vi) From the values described above, in the result, they refer to advertising services, of which, R$ 143,439 (R$ 195,117 on December 31, 2020), are related to media transfers. (vii) Refer to judicial deposits made on account of labor claims. (viii) The amounts refer to fiber infrastructure services. (ix) The amounts are related to services provided by TIM S.A., mainly related to network operation and maintenance in the scope of Transition Service Agreement, signed when closing the transaction. The company has social investment actions that include donations, projects developed by the Tim Institute and sponsorships. On December 31, 2021, the Company invested R$ 9,147 4,829 Balances on equity accounts are recorded in the groups: trade accounts receivable, prepaid expenses, suppliers and other current assets and liabilities. |
Management remuneration
Management remuneration | 12 Months Ended |
Dec. 31, 2021 | |
Management remuneration | 36. Management remuneration The key management personnel includes statutory directors and the Board of Directors. The payment of key management personnel for the provision of their services is presented below: 2021 2020 2019 Short-term benefits 31,494 23,949 22,524 Other long-term benefits 1,052 4,544 900 Share-based payments remuneration 15,176 6,343 5,379 Total compensation 47,722 34,836 28,803 |
Financial instruments and risk
Financial instruments and risk management | 12 Months Ended |
Dec. 31, 2021 | |
Financial instruments and risk management | 37. Financial instruments and risk management Among the financial instruments registered in the Company, there are derivatives that are financial assets or liabilities measured at fair value through the result. At each balance sheet date such assets/liabilities are measured at their fair value. Interest, monetary correction, foreign exchange variation and variations arising from the fair value measurement, where applicable, shall be recognized in the statement of income when incurred, under the line item financial income or financial expenses. Initially, derivatives are recognized at fair value on the date a derivative contract is concluded and are subsequently remeasured at fair value. The company does not apply “ hedge accounting.” The Company carries out transactions with derivative financial instruments, without speculative purposes, only with the aim of i) reducing risks related to foreign exchange variation and ii) managing interest rate exposure. The Company's derivative financial instruments are specifically represented by swap contracts . The company's financial instruments are being presented in compliance with IFRS 9. The main risk factors that the company is exposed to are as follows: (i) Risks of foreign exchange variations The risks of foreign exchange variations relate to the possibility of the Company computing i) losses derived from fluctuations in exchange rates by increasing the balances of debt with loans and financing obtained in the market and the corresponding financial expenses or ii) increase in cost in commercial contracts that have some type of link to foreign exchange variation. In order for these types of risks to be mitigated, the company performs: swap contracts with financial institutions with the aim of canceling the impacts arising from the fluctuation of exchange rates on the balance sheet and financial result and commercial contracts with foreign exchange band clauses with the aim of partially mitigating foreign exchange risks or derivative financial instruments to reduce the remaining risks of foreign exchange exposure in commercial contracts. On December 31, 2021, the Company's loans and financings indexed to the variation of foreign currencies are fully protected, both in terms and in value, by swap contracts. Gains or losses on these swap contracts are recorded in the company's earnings. In addition to the risks mentioned above, there are no other financial assets and liabilities in significant amounts that are indexed to foreign currencies. (ii) Interest rate risks Interest rate risks relate to: The possibility of variations in the fair value of the loans obtained by the company indexed to TJLP, IPCA, fixed rate and/or TLP, when such rates pose a risk to the company’s perspective of not corresponding proportionally to the rates relating to Interbank Certificates of Deposit (CDI). The Company opted to hedge the exposure linked to the IPCA arising from the issuance of debentures, financing to BNDES and the exposure to a rate linked to the debt with BNP Paribas, all of them until maturity. The possibility of an unfavorable movement in interest rates would cause an increase in the financial expenses of the Company, as a result of the share of the debt and the passive positions that the Company has in swap contracts linked to floating interest rates (percentage of the CDI). However, on December 31, 2021, the Company maintains its financial resources applied to Interbank Certificates of Deposit (CDI), which substantially reduces this risk. (iii) Credit risk inherent in the provision of services The risk is related to the possibility of the company computing losses derived from the inability of the subscribers to honor the payments of the invoiced amounts. To minimize this risk, the company preventively performs credit analysis of all orders imputed by the sales areas and monitors the accounts receivable of subscribers, blocking the ability to use services, among other actions, if customers do not pay their debts. There are no customers who have contributed more than 10 (iv) Credit risk inherent in the sale of telephone sets and prepaid telephone cards The group's policy for the sale of telephone devices and the distribution of prepaid telephone cards is directly related to the credit risk levels accepted during the normal course of business. The selection of partners, the diversification of the portfolio of accounts receivable, the monitoring of loan conditions, the positions and limits of orders established for traders, the formation of collateral are procedures adopted by the company to minimize possible collection problems with its trading partners. There are no 10 no 10 (v) Liquidity risk - Liquidity risk arises from the need for cash before the obligations assumed. The company structures the maturities of its non-derivative financial instruments and their respective derivative financial instruments so as not to affect liquidity. - The management of liquidity and cash flow of the Company are performed on a daily basis to ensure that cash operating generation and previous fund raising, as necessary, are sufficient to maintain the schedule of operating and financial commitments. - All financial investments of the Company have daily liquidity and the Management may, even in specific cases: i) revise the dividend payment policy; ii) issue new shares; and/or, iii) sell assets to increase liquidity. (vi) Financial credit risk The cash flow forecast is performed by the Finance Executive Board, which monitors the continuous forecasts of the liquidity requirements to ensure that the Company has enough cash to satisfy its operating needs. This forecast takes into account investment plans, debt financing, compliance with contractual clauses, compliance with internal goals and, if applicable, external regulatory or legal requirements. The risk is related to the possibility of the company computing losses derived from the difficulty of redemption of short-term financial investments and swap Fair value of derivative financial instruments: The consolidated derivative financial instruments are presented below: 2021 2020 Assets Liabilities Assets Liabilities Derivative transactions 198,027 208,787 340,660 36,166 Other derivatives (i) 457,892 - 161,429 - 655,919 208,787 502,089 36,166 Current portion (134,292) (194,837) (262,666) (7,273) Non-current portion 521,627 13,950 239,423 28,893 (i) Other derivatives are instruments of share subscription options represent the option of the Company to subscribe 4.08 17.7 million 458 161 440.3 million The long-term derivative financial instruments on December 31, 2021 are due in accordance with the following schedule: Assets 2023 39,335 2024 16,843 2025 onwards 465,449 521,627 Non-derivative financial liabilities are substantially composed of accounts payable with suppliers, dividends payable and other obligations, the maturity of which will occur in the next 12 months, except for loans and financing and leases, the nominal flows of payments of which are disclosed in notes 20 and 16. Financial instruments measured at fair value: 2021 Level 1 Level 2 TOTAL Total assets 4,579,528 655,919 5,235,447 Financial assets at fair value through profit or loss 4,579,528 655,919 5,235,447 Derivative financial instruments - 198,027 198,027 Other derivatives - 457,892 457,892 Marketable securities 4,579,528 - 4,579,528 Total liabilities - 208,787 208,787 Financial liabilities at fair value through profit or loss - 208,787 208,787 Derivative financial instruments - 208,787 208,787 2020 Level 1 Level 2 TOTAL Total assets 2,077,499 502,089 2,579,588 Financial assets at fair value through profit or loss 2,077,499 502,089 2,579,588 Derivative financial instruments - 340,660 340,660 Other derivatives - 161,429 161,429 Marketable securities 2,077,499 - 2,077,499 Total liabilities - 36,166 36,166 Financial liabilities at fair value through profit or loss - 36,166 36,166 Derivative financial instruments - 36,166 36,166 The fair value of financial instruments traded on active markets is based on market prices quoted on the balance sheet date. A market is considered active when the quoted prices are readily and regularly available from an Exchange, distributor, broker, industry group, pricing service or regulatory agency, and these prices represent actual market transactions which occur regularly on a purely commercial basis. These instruments are included in Level 1. The instruments included in Level 1 mainly comprise the equity investments of bank certificates of deposit (CDB) and committed classified as securities for trading. The fair value of financial instruments that are not traded on active markets (e.g. over-the-counter derivatives) is determined through the use of valuation techniques. These valuation techniques maximize the use of data adopted by the market where it is available and rely as little as possible on entity-specific estimates. If all relevant information required for the fair value of an instrument is adopted by the market, the instrument is included in Level 2. If one or more relevant information is not based on data adopted by the market, the instrument shall be included in Level 3. Specific valuation techniques used to value financial instruments include: · Quoted market prices or quotes of financial institutions or brokers for similar instruments. · The fair value of interest rate swaps · Other techniques, such as analysis of discounted cash flows, available data of the last relevant transaction and analysis of results based on multiples of similar companies, are used to determine the fair value of the remaining financial instruments. The fair values of currency derivative financial instruments and interest rates of the Company were determined by means of future cash flows (active and passive position) using the contracted conditions and bringing these flows to present value through discounts for the use of future interest rate disclosed by market sources. Fair values were estimated at a specific time, based on available information and own evaluation methodologies. Financial assets and liabilities by Category The financial instruments of the company by category can be summarized as follows: December 31, 2021 Measured at amortized cost Fair value through profit or loss Total Assets, as per balance sheet 9,472,377 5,235,447 14,707,824 Derivative financial instruments - 198,027 198,027 Other derivatives - 457,892 457,892 Trade accounts receivable and other accounts receivable, excluding prepayments 3,253,207 - 3,253,207 Marketable securities - 4,579,528 4,579,528 Cash and cash equivalents 5,228,615 - 5,228,615 Leases 243,121 - 243,121 Judicial deposits 718,773 - 718,773 Other amounts recoverable 28,661 - 28,661 Measured at amortized cost Fair value through profit or loss Total Liabilities, as per balance sheet 16,095,802 208,787 16,304,589 Loans and financing 3,845,465 - 3,845,465 Derivative financial instruments - 208,787 208,787 Suppliers and other obligations, excluding legal obligations 2,653,218 - 2,653,218 Lease liabilities 9,063,539 - 9,063,539 Dividends and interest on shareholders' equity payable 533,580 - 533,580 December 31, 2020 Measured at amortized cost Fair value through profit or loss Total Assets, as per balance sheet 6,756,811 2,579,588 9,336,399 Derivative financial instruments - 340,660 340,660 Other derivatives 161,429 161,429 Trade accounts receivable and other accounts receivable, excluding prepayments 3,180,661 - 3,180,661 Marketable securities - 2,077,499 2,077,499 Cash and cash equivalents 2,575,291 - 2,575,291 Leases 162,198 - 162,198 Judicial deposits 794,755 - 794,755 Other amounts recoverable 43,906 - 43,906 Measured at amortized cost Fair value through profit or loss Total Liabilities, as per balance sheet 14,391,175 36,166 14,427,341 Loans and financing 2,345,032 - 2,345,032 Derivative financial instruments - 36,166 36,166 Suppliers and other obligations, excluding legal obligations 3,128,732 - 3,128,732 Leases 8,378,835 - 8,378,835 Dividends and interest on shareholders' equity payable 538,576 - 538,576 Regular purchases and sales of financial assets are recognized on the trading date - the date on which the Company undertakes to buy or sell the asset. Investments are initially recognized at fair value. After initial recognition, changes in fair value are recorded in the profit and loss for the year, in the financial income and expenses’ group. Financial risk hedge policy adopted by the Company The Company's policy establishes that mechanisms must be adopted to protect against financial risks arising from the contracting of financing in foreign currency or indexed to the interest rate, in order to manage said exposure. The contracting of derivative financial instruments against foreign exchange exposure shall occur simultaneously with the contracting of the debt that gave rise to such exposure. The level of coverage to be contracted for such foreign exchange exposures shall be 100% of the risk, both in terms and in value. To cover interest rates, it is up to the Company to elect or not to contract a hedging mechanism, as provided for in the internal policies. On December 31, 2021, there are no margins or guarantees applied to transactions with derivative financial instruments of the Company. Criteria for selection of financial institutions obey parameters that take into consideration rating made available by renowned agencies of analysis of risk, shareholders' equity and transactions, and resources’ concentration levels. The operations with derivative financial instruments contracted by the company and in force on December 31, 2021 and December 31, 2020 are shown in the following table: December 31, 2021 COUNTERPARTY % Coverage AVERAGE SWAP RATES Currency SWAP type Debt SWAP Total Debt Total swap (Long position)¹ Active Tip Short position USD LIBOR x DI KFW/ Finnvera JP Morgan and Bank of America 282,474 282,474 100 LIBOR 6M + 0.75% p.a. 79.00 92.59 USD PRE x DI BNP Paribas BNP Paribas 428,793 429,247 100 3.32% p.a. 155 USD PRE x DI The Bank of Nova Scotia Scotiabank 559,650 559,933 100 1.73% p.a. CDI + 1.05 BRL PRE x DI BNP Paribas BNP Paribas 515,166 517,843 100 8.34% p.a. CDI + 1.07 BRL IPCA x DI DEBENTURE ITAU 1,696,999 1,696,999 100 IPCA + 4.17% p.a. CDI + 0.95 BRL IPCA x DI BNDES XP 396,281 396,281 100 IPCA + 4.23% p.a. 96.95 1 December 31, 2020 COUNTERPARTY % Coverage AVERAGE SWAP RATES Currency SWAP type Debt SWAP Total Debt Total swap (Long position)¹ Active Tip Short position USD LIBOR x DI KFW/ Finnvera JP Morgan and Bank of America 351,233 351,233 100 LIBOR 6M + 0.75% p.a. 85.25 EUR PRE x DI Bank of America Bank of America 570,878 570,878 100 0.33% p.a. 108.05% USD PRE x DI The Bank of Nova Scotia. Scotiabank 1,031,526 1,031,526 100 1.72% p.a. 134.43% USD PRE x DI BNP Paribas BNP Paribas 399,725 399,725 100 3.32% p.a. 155 Position showing the sensitivity analysis – effect of variations in the fair value of the swaps For the purpose of identifying possible distortions arising from operations with consolidated derivative financial instruments currently in force, a sensitivity analysis was performed considering the variables CDI, US dollar (USD), Libor and IPCA, individually, in three distinct scenarios (probable, possible and remote), and their respective impacts on the results obtained. Our assumptions basically observed the individual effect of the CDI, USD, Libor and IPCA variation used in the transactions as the case may be, and for each scenario the following percentages and quotes were used: Sensitivity scenario Fair value in USD, EUR, BRL and IPCA (1) A) ∆ Accumulated variation in debt Fair value of the active tip of the swap (+) Fair value of the passive tip of the swap (-) Swap result B) ∆ Accumulated variation in swap C) Final Result (B-A) Dez/21 3,390,406 - 3,390,406 (3,401,372) (10,966) - - CDI probable 3,390,406 - 3,390,406 (3,401,372) (10,966) - - possible 3,388,105 (2,301) 3,388,105 (3,428,742) (40,637) (29,671) (27,370) remote 3,385,955 (4,451) 3,385,955 (3,455,013) (69,058) (58,093) (53,641) USD probable 3,390,406 - 3,390,406 (3,401,372) (10,966) - - possible 3,709,499 319,094 3,709,499 (3,401,372) 308,127 319,094 - remote 4,028,593 638,187 4,028,593 (3,401,372) 627,221 638,187 - LIBOR probable 3,390,406 - 3,390,406 (3,401,372) (10,966) - - possible 3,391,542 1,136 3,391,542 (3,401,372) (9,830) 1,136 - remote 3,392,677 2,271 3,392,677 (3,401,372) (8,695) 2,271 - IPCA probable 3,390,406 - 3,390,406 (3,401,372) (10,966) - - possible 3,277,656 (112,750) 3,277,656 (3,401,372) (123,716) (112,750) - remote 3,173,004 (217,402) 3,173,004 (3,401,372) (228,368) (217,402) - (1) (KFW Finnvera, Scotia, BofA, BNP, Debenture and BNDES) Schedule of risk variable of derivative financial instruments Risk variable Sensitivity scenario CDI USD LIBOR IPCA CDI probable 9.15 5.5805 0.3433 10.06 possible 11.44 5.5805 0.3433 10.06 remote 13.73 5.5805 0.3433 10.06 USD probable 9.15 5.5805 0.3433 10.06 possible 9.15 6.3210 0.3433 10.06 remote 9.15 8.3708 0.3433 10.06 LIBOR probable 9.15 5.5805 0.3433 10.06 possible 9.15 5.5805 0.4291 10.06 remote 9.15 5.5805 0.5149 10.06 IPCA probable 9.15 5.5805 0.3433 10.06 possible 9.15 5.5805 0.3433 12.58 remote 9.15 5.5805 0.3433 15.09 As the Company has derivative financial instruments for the purposes of protection of its respective financial liabilities, the changes in the scenarios are accompanied by the respective object of protection, thus showing that the effects related to the exposure generated in the swaps It is noteworthy that the operations with derivative financial instruments contracted by the company have as sole objective the patrimonial protection. In this way, an improvement or worsening in their respective market values will be equivalent to an inverse movement in the corresponding portions of the value of the financial debt contracted, object of the derivative financial instruments of the company. The sensitivity analyses for derivative financial instruments in force on December 31, 2021 were carried out considering, basically, the assumptions related to changes in market interest rates and the change in the US dollar used in swap Chart of gains and losses with derivatives during the year Schedule of position showing gains and losses with derivatives 2021 2020 Net income from derivative operations (87,603) 290,856 Income (loss) from operations with other derivatives 285,009 155,165 Capital Management The group's objectives in managing its capital are to safeguard the group's ability to continue to deliver return to shareholders and benefits to other stakeholders, as well as maintain a capital structure to reduce this cost. To maintain or adjust the group's capital structure, management may review the dividend payment policy, return capital to shareholders, or issue new shares or sell assets to reduce, for example, the level of debt. The financial leverage ratios on December 31, 2021 and 2020 can be summarized as follows: Schedule of capital management 2021 2020 Total loans and derivatives (note 20 and 37) 3,398,333 1,879,109 Leases - Liabilities (note 16) 9,063,539 8,378,835 Leases - Assets (note 16) (243,121) (162,198) Less: Cash and cash equivalents (note 4) (5,228,615) (2,575,291) FIC (note 5) (4,568,020) (2,070,438) Net debt 2,422,116 5,450,017 Other derivatives (note 37) 457,892 161,429 Financing of 5G License 843,020 - Adjusted net debt 3,723,028 5,611,447 Adjusted EBITDA (1) (last 12 months) 9,459,299 8,330,038 Leverage ratio 0.39 0.65 Reconciliation of profit for the year to Adjusted EBITDA: Profit for the year 2,957,174 1,828,254 Depreciation and amortization 5,691,696 5,527,012 Finance Income (Cost), Net 652,806 810,622 Income tax and social contribution 146,051 164,150 Share of loss of an associate 11,572 - Adjusted EBITDA (i) 9,459,299 8,330,038 (i) Adjusted EBITDA: Presentation of Adjusted EBITDA as a non-GAAP measure is useful to management, investors and other users of our financial information in evaluating operating profitability of the Company. Adjusted EBITDA is calculated by adding back financial income (expenses), income tax and social contribution, depreciation and amortization cost and expense, and share of loss of an associate to profit for the year. Changes in financial liabilities Changes in liabilities arising from financing activities such as loans and financing, lease liabilities lease and financial instruments are presented below: Loans and financing Lease liabilities Derivative financial instruments (assets) liabilities December 31, 2020 2,345,032 8,378,835 (465,922) Inflows 3,062,000 2,041,474 (296,464) Cancellations - (202,379) - Financial expenses 167,857 858,260 148,177 Foreign exchange variations, net 60,463 - (60,574) Payment (1,789,887) (2,012,651) 227,651 - December 31, 2021 3,845,465 9,063,539 (447,132) Loans and financing Lease liabilities Derivative financial instruments (Assets) Liabilities December 31, 2019 2,029,088 7,780,870 (42,106) Inflows 1,800,000 1,966,355 (161,429) Remeasurement - (443,666) - Financial expenses 90,500 797,569 13,016 Foreign exchange variations, net 305,010 - (305,012) Payment (1,879,566) (1,722,293) 29,610 December 31, 2020 2,345,032 8,378,835 (465,922) |
Defined benefit pension plans a
Defined benefit pension plans and other post-employment benefits | 12 Months Ended |
Dec. 31, 2021 | |
Defined benefit pension plans and other post-employment benefits | 38. Defined benefit pension plans and other post-employment benefits Schedule of asset policy and medical plan 2021 2020 PAMEC/asset policy and medical plan 6,492 7,346 ICATU, SISTEL and VIVEST The Company has been sponsoring defined benefit private pension plans for a group of employees from the former TELEBRÁS system, which are currently under the administration of the Sistel Foundation for Social Security and the ICATU multi-sponsor fund. In addition to the plans coming from the TELEBRÁS system, there is also the plan administered by the VIVEST foundation resulting from the incorporation of AES Atimus. Such pension plans, as well as medical plans, are briefly explained below: PBS assisted (PBS-Tele Celular Sul and PBS-Tele Nordeste Celular): PBS (PBS Tele Celular Sul and PBS Tele Nordeste Celular): TIMPREV Plan (South and Northeast): Administration agreement: PAMEC/Asset Policy: AES Telecom Fiber The actuarial position of liabilities and assets related to retirement and health care plans, on December 31, 2020, in accordance with the rules provided for by IAS 19 is presented below. a) Effects on the base date of December 31: Plans Total PBS PBS Assisted Administration agreement PAMEC/ Asset Policy AES Telecom Medical plan 2021 2020 Reconciliation of assets and liabilities on 12/31/2021 (*) (*) Present value of the actuarial obligations 38,869 9,176 119 672 14,100 3,231 66,167 69,362 Fair value of the plan assets (56,478) (14,739) (405) - (11,511) - (83,133) (80,856) Present value of the obligations exceeding the fair value of the assets (17,609) (5,563) (286) 672 2,589 3,231 (16,966) (11,494) Amount recognized in other comprehensive income - 2,327 168 - - - 2,495 2,023 Net actuarial liabilities/(assets) (17,609) (3,236) (118) 672 2,589 3,231 (14,471) (9,471) (*) No asset was recognized by the sponsors, due to the impossibility of reimbursing this surplus, and the fact that the sponsor’s contributions will not be reduced in the future. b) Changes in net actuarial liabilities (assets) Plans PBS PBS Assisted Administration agreement PAMEC/ Asset Policy AES Telecom Medical plan Actuarial liabilities (assets) on 12/31/2020 (15,731) (1,360) (287) 858 2,145 4,343 Expense (revenue) recognized in income (loss) (1,063) (90) (20) 57 160 535 Contributions of the sponsor - - - (45) - (8) Recognized actuarial (gains) or losses (815) (1,786) 189 (198) 284 (1,639) Unrecognized actuarial (gains) or losses - - - - - - Net actuarial liabilities (assets) on 12/31/2021 (17,609) (3,236) (118) 672 2,589 3,231 c) Reconciliation of present value of obligations Plans PBS PBS Assisted Administration agreement PAMEC/ Asset Policy AES Telecom Medical plan Value of obligations on 12/31/2020 41,852 10,072 147 858 12,090 4,343 Cost of current service 17 - - - - 213 Interest on actuarial obligation 2,743 640 10 57 868 322 Benefits paid in the year (2,898) (768) (9) (45) (605) (8) Contributions paid by participants - 0 (Gains)/losses in obligations (2,845) (768) (29) (198) 1,747 (1,639) Value of obligations on 12/31/2021 38,869 9,176 119 672 14,100 3,231 d) Reconciliation of the fair value of the assets Plans PBS PBS Assisted Administration agreement PAMEC/ Asset Policy AES Telecom Medical plan Fair value of assets on 12/31/2020 57,479 12,998 434 - 9,945 - Benefits paid in the year (2,898) (768) (9) - (605) - Actual earnings from assets during the year 3,799 834 29 - 708 - Actuarial gain (loss) on plan assets (1,902) 1,675 (49) - 1,463 - Contributions paid by participants - - - - - - Contributions of sponsor converted in the plan - - - - - Fair value of assets on 12/31/2021 56,478 14,739 405 - 11,511 - e) Expenses planned for 2022 Plans PBS PBS Assisted Administration agreement PAMEC/ Asset Policy AES Telecom Medical plan Current service cost (with interest) 4 - - - - 121 Interest on actuarial obligations 3,289 769 10 57 1,242 290 Earnings expected from assets (4,841) (1,257) (35) - (1,008) - Interest on the effect of the (asset)/liability limit 1,552 284 10 - - - Total unrecognized net expense (revenue) 4 (204) (15) 57 234 411 Actuarial assumptions adopted in the calculations The main actuarial assumptions adopted in the calculation were as follows: Nominal discount rate for the actuarial obligation: PBS South: 8.81% / 5.13%; PBS Nordeste: 8.84% / 5.16%; CA: 8.81% / 5.13%; PBS-A: 8.78% / 5.10%; AES: 9.02% / 5.33%; PAMEC: 8.81% / 5.13%; FIBER: 9.02% / 5.33% Salary growth rate - nominal: PBS: 3.50%/ 0.00% CA, PBS-A, AES, PAMEC and FIBER: Not applicable Biometric general mortality table: PBS, CA, PAMEC and FIBER: AT-2000 segregated per sex, decreased by 10% Biometric table of new disability benefit vested: PBS and FIBER: Álvaro Vindas; CA, PBS-A, AES and PAMEC: Not applicable Expected turnover rate: PBS: Null; CA, PBS-A, AES and PAMEC: Not applicable; FIBER: 0.15/ (length of service + 1), being null as of 50 years old Probability of retirement: PBS and FIBER: 100% at 1st eligibility; CA, PBS-A, AES and PAMEC: Not applicable Estimated long-term inflation rate PAMEC and FIBER: 6.60% / 3.00% Determination method Projected Unit Credit Method |
Insurances
Insurances | 12 Months Ended |
Dec. 31, 2021 | |
Insurances | 39. Insurances The Company maintains a policy of monitoring the risks inherent in its operations. As a result, on December 31, 2021, the company had insurance contracts in force to cover operational risks, civil liability, cyber risks, health, among others. The management of the company understands that the policies represent sufficient amounts to cover any losses. The main assets, liabilities or interests covered by insurance and their maximum indemnity limits are as follows: Modalities Maximum indemnity limits Operational Risks R$ 550,000 General Civil Liability - RCG R$ 80,000 Cyber risks R$ 30,001 Automobile (executive and operational fleet) R$ 1,000 for optional civil liability (property damage and bodily harm) and R$ 100 for pain and suffering. |
Supplementary information to th
Supplementary information to the cash flow | 12 Months Ended |
Dec. 31, 2021 | |
Supplementary information to the cash flow | 40. Supplementary information to the cash flow Schedule of supplementary information to the cash flow 2021 2020 2019 Non-cash transactions Additions to property, plant and equipment and intangible assets - with no effect on cash (1,929,392) (1,315,151) (6,653,985) Additions to intangible assets - acquisition of licenses 2,682,469 - - TIM participated in the 5G Auction for the 2.3GHz, 3.5Ghz and 26Ghz radio frequency bands to deploy the 5th Generation mobile telephony, winning several lots in these radio frequencies. In December 2021, the Capex recorded for licenses and related obligations is R$ 3,584 2,682 902 |
Subsequent events
Subsequent events | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent events | 41. Subsequent events Mr. Alberto Mario Griselli appointed as CEO of TIM S.A. TIM S.A., in continuity with the Material Fact published on January 21, 2022, communicated that, on January 31, 2022, its Board of Directors accepted the resignation of Mr. Pietro Labriola from the positions of Chief Executive Officer (“CEO”) and Board Member of the Company. The Company’s Board of Directors subsequently appointed Mr. Alberto Mario Griselli to effectively and immediately replace Mr. Labriola in the positions of CEO and Board member. The election of Mr. Griselli to the Company’s Board needs to be confirmed by the next Annual General Meeting of TIM. The position of Chief Revenue Officer (“CRO”), previously held by Mr. Griselli, will be temporarily vacant, and the CEO will accumulate his responsibilities. Mr. Griselli holds a degree in Electronic Engineering from La Sapienza University in Rome and a FMBA from Columbia University. With over 20 years of experience in the telecommunications industry, he has held relevant positions such as Vice-President for Latin America at TIMwe, a global provider of mobile engagement solutions for telecom operators, and Managing Director for Latin America at Value Partners, a management consulting firm. Mr. Griselli held the position of CRO at TIM since July 30, 2019. Transfer control of Oi’s mobile telephony activities TIM S.A. became aware that in an extraordinary public meeting of its Board of Directors held on January 31, 2022, ANATEL – the National Telecommunications Agency, unanimously granted prior consent to the implementation of the corporate transaction referring to the full transfer of control of the three specific purpose entities (“Mobile Assets SPE” or “SPE”) (1) , which correspond to the mobile telephony activities of Oi Móvel S.A. – Under Judicial Reorganization (“Oi Móvel”), for the companies TIM, Telefônica Brasil S.A. and Claro S.A. (“Transaction”). On February 9, 2022, the Administrative Court of the Administrative Council for Economic Defense (CADE), approved the implementation of the corporate transaction referring to the full transfer of control of the three special purpose entities (“Mobile Assets SPE” or “SPE”)1, which correspond to the mobile telephony activities of Oi Móvel S.A. – Under Judicial Recovery (“Oi Móvel,” “Seller”), for the companies TIM, Telefônica Brasil S.A. and Claro S.A. On 13th April 2022, TIM, Telefônica Brasil S.A. and Claro S.A. (together “Buyers”) delivered to Oi Móvel S.A. – Under Judicial Reorganization (“Oi Móvel”, “Seller”), the closing notice related to the process of acquisition of the Seller's mobile assets (“Transaction”). In order for such delivery to become possible, approvals were obtained by the Administrative Council for Economic Defense (CADE), through the signing of an Agreement on Concentration Control, which has already become final, and by the National Telecommunications Agency (ANATEL), in particular with the publication of Acts No. 4,949/2022, 4,950/2022 e 4,951/2022, in addition to being met or waived by the Buyers, as the case may be, all contractual precedent conditions. Thus, the parties scheduled the closing of the transaction for April 20th, 2022. 1 Distribution of Interest on Shareholders’ Equity (JSCP) The Company's Board of Directors approved on March 22, 2022 the payment of R$ 195,000 in Interest on Equity. The payment will occur until April 27th, 2022 and the date for identification of shareholders entitled to receive such values is March 28th, 2022. |
Estimates and areas where jud_2
Estimates and areas where judgment is significant in the application of the Company's accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Impairment loss on non-financial assets and investments in associated companies | (a) Impairment loss on non-financial assets and investments in associated companies Impairment losses occur when book value of an asset or cash generating unit exceeds its recoverable value, which is the highest of fair value less selling costs and value in use. Calculation of fair value less selling costs is based on information available on similar assets’ selling transactions or market prices less additional costs to dispose of the asset. The calculation of value in use is based on the discounted cash flow model. Any reorganization activities with which the Company is not committed to on the reporting date of the Presentation of financial statements or significant future investments that could improve the asset base of the cash generating unit under test are excluded for impairment The main non-financial assets for which this assessment was made are goodwill recorded by the Company (note 15) and its tangible and intangible assets. Net investments in associated companies are valued after applying the equity method to determine whether there is any objective evidence of impairment. The recoverable amount of an investment in an associated company must be determined for each investment, unless the associated company does not generate cash inflows on an ongoing basis that are largely independent of those generated by the entity’s other assets. The investment in an associated company was valued as described in Note 13. |
Income tax and social contribution (current and deferred) | (b) Income tax and social contribution (current and deferred) Income tax and social contribution (current and deferred) are calculated according to interpretations of current legislation and IAS 12. This process typically involves complex estimates to determine taxable income and temporary differences. In particular, the deferred assets on tax losses, negative basis of social contribution and temporary differences is recognized in proportion to the probability that future taxable income is available and can be used. The measurement of the recoverability of deferred income tax on tax losses, negative basis of social contribution and temporary differences takes the history of taxable income into account, as well as the estimate of future taxable income (note 10). |
Provision for legal and administrative proceedings | (c) Provision for legal and administrative proceedings The legal and administrative proceedings are analyzed by the Management along with its legal advisors (internal and external). The Company considers factors in its analysis such as hierarchy of laws, precedents available, recent court judgments, their relevance in the legal system and payment history. These assessments involve Management’s judgment (note 24). |
Fair value of derivatives and other financial instruments | (d) Fair value of derivatives and other financial instruments The financial instruments presented in the balance sheet at fair value are measured using valuation techniques that consider observable data or observable data derived from market (note 37). |
Unbilled revenues | (e) Unbilled revenues Since some cut dates for billing occur at intermediate dates within the months of the year, as the end of each month there are revenues earned by the Company, but not actually invoiced to its customers. These unbilled revenues are recorded based on estimate that takes into consideration historical consumption data, number of days elapsed since the last billing date, among others (note 27). |
Leases | (f) Leases The Company has a significant number of the lease contracts in which it acts a lessee (note 16), and with the adoption of the accounting standard IFRS 16 – Leases, on 01/01/2019, certain judgments were exercised by Company’s management in measuring lease liabilities and right-of-use assets, such as: (i) estimate of the lease term, considering non-cancellable period and the period covered by options to extend the contract term, when the exercise depends only from the Company, and this exercise is reasonably certain; and (ii) using certain assumptions to calculate the discount rate. The company is not able to readily determine the interest rate implicit on the lease and, therefore, considers its incremental rate on loans to measure lease liabilities. Incremental rate on the lessee’s loan is the interest rate that the lessee would have to pay when borrowing, for a similar term and with a similar guarantee, the resources necessary to obtain the asset with a value similar to the right of use asset in a similar economic environment. The company estimates the incremental rate using observable data (such as market interest rates) when available and considers aspects that are specific to the Company (such as the cost of debt) in this estimate. |
Operations (Tables)
Operations (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Operations | |
The effects of the transaction are detailed below: | The effects of the transaction are detailed below: Description 12/31/2021 Transaction price 1,096,294 Investment registration at fair value 1,612,957 Cost of assets Derecognition of the assets and liabilities of the subsidiary (1,211,472) Write-off of goodwill (1,051,477) Write-off of deferred tax on goodwill amortized 335,935 Gain on transaction 782,237 Income tax and social contribution (509,245) Net gain on transaction 272,992 Gain before income tax and social contribution on remeasurement of investment at fair value 668,720 Gain before income tax and social contribution on asset disposal 113,517 |
Management statement and basi_2
Management statement and basis of preparation of the financial statements (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Management Statement And Basis Of Preparation Of Financial Statements | |
The impact of the reverse merger of TIM Participa??es by TIM S.A. was limited to reclassifications among certain accounts within the current year statement of changes in shareholders’ equity as follows: | The impact of the reverse merger of TIM Participações by TIM S.A. was limited to reclassifications among certain accounts within the current year statement of changes in shareholders’ equity as follows: Equity accounts The Company’s equity reserves Impact on TIM S.A. statement of changes in equity TIM Participações Share capital 13,477,891 3,611,593 9,866,298 Capital reserve 397,183 (20,892) 418,075 Legal reserve 1,036,194 (57,603) 1,093,797 Tax benefit reserve 1,781,560 - 1,781,560 Reserve for expansion 6,499,602 (3,535,824) 10,035,426 Treasury shares (4,837) 5,456 (10,293) Other comprehensive income (4,848) (2,730) (2,118) Total 23,182,745 - 23,182,745 |
Cash and cash equivalents (Tabl
Cash and cash equivalents (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Schedule of financial assets | Schedule of financial assets The Company’s Management determines the classification of its financial assets upon initial recognition. 2021 2020 Cash and banks 99,821 100,009 Unrestrictedly available financial investments investments: Bank Deposit Certificates (CDB)/Repurchase and resale agreements 5,128,794 2,475,282 Total cash and cash equivalents 5,228,615 2,575,291 |
Marketable securities (Tables)
Marketable securities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Marketable Securities | |
Schedule of marketable securities | Schedule of marketable securities 2021 2020 FUNCINE (i) 11,508 7,061 Fundo Soberano (ii) 9,624 5,220 FIC: (iii) Government bonds (iv) 2,975,613 1,345,797 CDB (v) 40,496 17,370 Financial bills (vi) 703,118 292,500 Other (vii) 839,169 409,551 4,579,528 2,077,499 Current portion (4,568,020) (2,070,438) Non-current portion 11,508 7,061 (i) As of December 2017, the Company, with the aim of using tax deductibility benefit for income tax and social contribution purposes, started investing in the National Film Industry Financing Fund (FUNCINE). The average remuneration in 2021 is - 0.06 % p.a. (- 3.34 % p.a. on December 31, 2020). ( ii) Fundo Soberano is composed only of federal government bonds. The average remuneration in 2021 is 95.13 % ( 87.71 % on December 31, 2020) of the variation of the interbank deposit certificate – CDI. (iii) In August 2017, the Company invested in open FIC's (Quota Investment Fund). Funds are mostly made up of federal government bonds and papers from top-tier financial institutions. The average remuneration in 2021 of the FICs was 122.76 % ( 112.72 % on December 31, 2020) of the variation of the Interbank Deposit Certificate – CDI. (iv) Government bonds are fixed income financial instruments issued by the National Treasury to finance the activities of the Federal Government. (v) The CDB operations are emitted by the banks with the commitment of stock buyback by the bank itself and with predetermined taxes. (vi) The Financial bills is a fix income tittle emitted by financial institutions with the objective of a long-term fund raising (vii) Is represented by: Debentures, FIDC, commercial notes, promissory notes, bank credit note. |
Trade accounts receivable (Tabl
Trade accounts receivable (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Schedule of trade account receivables | Schedule of trade account receivables The average rate considered in calculating the present value of accounts receivable recorded in the long term is 0.19 0.22 2021 2020 Trade accounts receivable 3,253,207 3,180,661 Gross accounts receivables 4,000,026 3,831,921 Billed services 2,107,682 2,039,403 Unbilled services 849,762 817,669 Network use (interconnexion) 504,333 399,083 Goods sold 521,362 552,962 Contractual assets (note 23) 15,340 14,914 Other accounts receivable 1,547 7,890 Provision for expected credit losses (746,819) (651,260) Current portion (3,066,906) (3,051,834) Non-current portion 186,301 128,827 |
Schedule of changes in the allowance for doubtful accounts | Schedule of changes in the allowance for doubtful accounts The movement of the provision for loss on expected settlement credits, accounted for as an asset reduction account, was as follows: 2021 2020 Opening balance 651,260 774,077 Supplement to expected losses 544,642 552,817 Write-off of provision (449,083) (675,634) Closing Balance 746,819 651,260 |
Schedule of aging of accounts receivable | Schedule of aging of accounts receivable The aging of accounts receivable is as follows: 2021 2020 Total 4,000,026 3,831,921 Undue 2,895,999 2,785,469 Overdue up to (days): 30 246,195 248,955 60 100,027 84,218 90 77,280 71,635 >90 680,525 641,644 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Schedule of inventory | Schedule of inventory Inventories are presented at the average acquisition cost. A loss is recognized to adjust the cost of Handsets and accessories to the net realizable value (selling price) when this value is less than the average acquisition cost. 2021 2020 Inventories 202,553 246,602 Inventories 214,605 257,477 Mobile handsets and tablets 140,934 186,961 Accessories and prepaid cards 53,791 55,558 TIM chips 19,880 14,958 Losses on adjustment to realizable amount (12,052) (10,875) |
Recoverable indirect taxes, c_2
Recoverable indirect taxes, charges and contributions (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Recoverable Indirect Taxes Charges And Contributions | |
Schedule of recoverable indirect taxes, fees and contributions | Schedule of recoverable indirect taxes, fees and contributions 2021 2020 Recoverable indirect taxes, fees and contributions 1,259,932 1,230,801 ICMS 1,216,912 1,188,018 Other 43,020 42,783 Current portion (354,620) (374,015) Non-current portion 905,312 856,786 The amounts of recoverable ICMS (state VAT) are mainly comprised by: (i) credits on the acquisition of property, plant and equipment directly related to the provision of telecommunication services (credits divided over 48 months). (ii) ICMS amounts paid under the tax substitution regime from goods acquired for resale, mainly mobile handsets, chips, tablets and modems sold by TIM. (iii) ICMS credits from the final and unappealable decision in May 2021 for a lawsuit involving the repetition of prepaid telephone services in Santa Catarina, in the amount of R$52 million. |
Recoverable direct taxes, cha_2
Recoverable direct taxes, charges and contributions (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Recoverable Direct Taxes Charges And Contributions | |
Schedule of direct taxes, fees and contributions recoverable | Schedule of direct taxes, fees and contributions recoverable 2021 2020 Recoverable direct taxes, charges and contributions 2,042,361 2,698,239 Income tax (IR) and social contribution (CS) (i) 807,096 381,905 PIS / COFINS (ii) 1,164,772 2,253,545 Other 70,493 62,789 Current portion (1,311,906) (1,421,112) Non-current portion 730,455 1,277,127 (i) Income tax and social contribution amounts are mainly related to other income tax and social contribution credits from previous years, whose current estimated term for use is later than 12 months. In September 2021, the Federal Supreme Court (STF), with general repercussions, established an understanding for the non-levy of Corporate Income Tax (IRPJ) and Social Contribution (CSLL) on the monetary restatement using the SELIC rate in cases of undue payment. Although the aforementioned decision is still pending publication, as well as the specific TIM lawsuit is still pending judgment, TIM recorded its best estimate to date, in the amount of R$ 547 (ii) The Recoverable PIS/COFINS amounts mainly refer to credits from a legal proceeding filed by TIM Celular S.A. (ultimately merged into TIM S.A., as well as TIM S.A. itself), with a favorable final decision in Higher Courts which discussed the exclusion of the ICMS from the PIS and COFINS calculation bases. According to the Company’s internal assessment, we expect to use these credits by the 2nd quarter of 2022. |
Deferred income tax and socia_2
Deferred income tax and social contribution (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Deferred Income Tax And Social Contribution | |
Schedule of deferred taxes assets and liabilities | Schedule of deferred taxes assets and liabilities The amounts recorded are as follows: 2021 2020 Tax loss and negative basis of social contribution 219,876 475,128 Temporary differences: Provision for legal and administrative proceedings 330,627 303,948 Losses on doubtful accounts receivable 257,529 224,459 Adjustments to present value – 3G license 3,298 5,240 Lease of LT Amazonas infrastructure 32,377 29,971 Employee profit sharing 40,177 36,915 Taxes with enforceability suspended (i) 437,950 258,246 Amortized Goodwill – TIM Fiber (ii) (34,560) (370,494) Derivative financial instruments (143,948) (154,718) Capitalized interest on 4G authorization (233,433) (262,608) Deemed costs – TIM S.A (42,617) (53,792) Adjustments to lease agreements 369,521 303,833 Accelerated depreciation (iii) (466,863) (266,464) Fair value adjustment I–Systems (former FiberCo) (iv) (249,477) - Other 16,431 20,982 Total deferred taxes - Assets 536,888 550,646 Deferred active tax portion 536,888 550,646 (i) Mainly represented by the Fistel fee for the financial years 2020 and 2021. The Operating Inspection Fee (TFF) for the years 2020 and 2021 had its payments suspended by virtue of an injunction and, therefore, still do not have a specific date for payment. See note 21 for details. (ii) Represented by the goodwill on the business combination of companies TIM Fiber RJ and SP acquired by TIM in 2012, partially realized in November 2021 once this transaction is completed. (iii) As of the 1Q20, TIM S.A. excludes the portion of acceleration of depreciation of movable assets belonging to property, plant and equipment from the calculation basis of the IRPJ and CSLL, due to their uninterrupted use in three operating shifts, supported by technical expert report, as provided for in Article 323 of the RIR/2018, or by the adequacy to the tax depreciation provided for in IN 1700/2017. Such tax adjustment generated a deferred liability of R$ 467 million until December 31, 2021 (R$ 266.5 million up to December 31, 2020) and applied as of January 1, 2020. (iv) Refers to deferred charges on the fair value of the non-majority interest calculated in the sale transaction described in Note 1 that took place in November 2021 between TIM S.A. and IHS Fiber Brasil - Cessão de Infraestruturas Ltda. |
Schedule of expectations to recover the credits | Schedule of expectations to recover the credits Based on these projections, the company has the following expectation of recovery of credits: Deferred income tax and social contribution Tax losses and negative basis 2022 103,847 2023 79,581 2024 36,448 2025 - Total 219,876 |
Prepaid expenses (Tables)
Prepaid expenses (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Prepaid Expenses | |
Schedule of prepaid expenses | Schedule of prepaid expenses 2021 2020 358,287 223,394 Advertisements not released (i) 86,154 1,679 Rentals and insurance 67,034 69,208 Incremental costs for obtaining contracts with customers (ii) 153,988 125,114 IT Services (iii) 28,626 10,535 Other 22,485 16,858 Current portion (275,148) (149,796) Non-current portion 83,139 73,598 (i) Represent prepaid payments of advertising expenses for products and services of the TIM brand that are recognized in the result according to the period of serving the advertisement. (ii) It is substantially represented by incremental costs related to sales commissions paid to partners for obtaining customer contracts arising from the adoption of IFRS 15, which are deferred to the result in accordance with the term of the contract and/or economic benefit, usually from 1 to 2 years. (iii) They represent prepayments of IT services expenses for network migration of information to the “cloud.” |
Judicial deposits (Tables)
Judicial deposits (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Judicial Deposits | |
Schedule of detailed information about judicial deposits | Schedule of detailed information about judicial deposits They are recorded at historical cost and updated according to current legislation: 2021 2020 718,773 794,755 Civil 285,583 315,312 Labor 128,607 149,390 Tax 178,914 181,670 Regulatory 111 111 Online attachment (i) 125,558 148,272 (i) Refer to legal blockages directly in the company's current accounts and financial investments linked to certain legal proceedings. This amount is periodically analyzed and when identified, reclassification is made to one of the other specific accounts of the legal deposit item. |
Investment (Tables)
Investment (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
As of December 31, 2020, TIM S.A. held 100% control over FiberCo (currently I-Systems). | As of December 31, 2020, TIM S.A. held 100% control over FiberCo (currently I-Systems). 2021 Fiber Co (current I-Systems) 2020 Fiber Co (current I-Systems) Number of quotas/shares held 1,000 1,000 Interest in total capital 100% 100% Shareholders' equity at 10/31/2021 (318) 1 Net loss from January to October 2021 (318) - Share of loss until October 31, 2021 (318) - Amount of the investment on December 31 - 1 |
Changes in investments in subsidiaries: | Changes in investments in subsidiaries: FiberCo (current I-Systems) (subsidiary) Balance of investment at December 31, 2020 1 Share of loss until October 2021 (318) Capital increase 1,211,789 Write-off of investment (1,211,472) Balance of investment at November 16, 2021 - |
On December 31, 2021, the Company does not have subsidiaries in its corporate structure. In November 2021, TIM S.A. started having I-Systems as an affiliated company and to record the income (loss) of this company under the equity method, no longer consolidating it. | On December 31, 2021, the Company does not have subsidiaries in its corporate structure. In November 2021, TIM S.A. started having I-Systems as an affiliated company and to record the income (loss) of this company under the equity method, no longer consolidating it. 2021 I-Systems Number of shares held 1,794,287,995 Interest in total capital 49% Shareholders' equity 1,794,288 Net loss for the year (22,968) Equity in earnings (11,254) Investment amount 1,601,703 |
Change of investment in associate: | Change of investment in associate: I-Systems (associated company) Balance of investment at December 31, 2020 - Revaluation of minority interest at fair value 1,612,957 Share of loss - November 2021 and December 2021 (11,254) Balance of investment at December 31, 2021 1,601,703 |
Property, plant and equipment (
Property, plant and equipment (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Schedule of changes in property, plant and equipment | Schedule of changes in property, plant and equipment · Changes in property, plant and equipment Balance at December 2020 Additions Write-offs (i) Transfers Balance at December 2021 Total cost of property, plant and equipment, gross 47,429,167 5,572,362 (3,841,851) - 49,159,678 Commutation/transmission equipment 25,875,916 26,905 (2,920,511) 2,872,144 25,854,454 Fiber optic cables 878,100 - (125,366) 25,778 778,512 Leased handsets 2,643,336 805 (13,495) 175,808 2,806,454 Infrastructure 6,436,572 - (511,635) 518,348 6,443,285 Informatics assets 1,770,386 - (46,584) 32,538 1,756,340 General use assets 902,287 - (43,401) 57,959 916,845 Right-of-use assets 8,367,895 1,591,307 (179,875) - 9,779,327 Land 40,794 - - - 40,794 Construction in progress 513,881 3,953,345 (984) (3,682,575) 783,667 Total Accumulated Depreciation (29,328,469) (3,951,760) 2,428,951 - (30,851,278) Commutation/transmission equipment (18,130,526) (1,983,589) 1,926,121 - (18,187,994) Fiber optic cables (482,613) (65,669) 26,077 - (522,205) Leased handsets (2,398,217) (145,661) 9,187 - (2,534,691) Infrastructure (4,018,854) (408,540) 384,239 - (4,043,155) Informatics assets (1,617,970) (58,209) 46,449 - (1,629,730) General use assets (637,903) (48,204) 36,878 - (649,229) Right-of-use assets (2,042,386) (1,241,888) - - (3,284,274) Total property, plant and equipment, net 18,100,698 1,620,602 (1,412,900) - 18,308,400 Commutation/transmission equipment 7,745,390 (1,956,684) (994,390) 2,872,144 7,666,460 Fiber optic cables 395,487 (65,669) (99,289) 25,778 256,307 Leased handsets 245,119 (144,856) (4,308) 175,808 271,763 Infrastructure 2,417,718 (408,540) (127,396) 518,348 2,400,130 Informatics assets 152,416 (58,209) (135) 32,538 126,610 General use assets 264,384 (48,204) (6,523) 57,959 267,616 Right-of-use assets 6,325,509 349,419 (179,875) - 6,495,053 Land 40,794 - - - 40,794 Construction in progress 513,881 3,953,345 (984) (3,682,575) 783,667 (i) Net write-offs are mainly represented by: · R$ 1,218,340 as write-off of property, plant and equipment, which makes up part of the balance of R$ 1,211,789 of net assets that was paid-in as share capital of I-Systems (formerly FiberCo) on November 1, 2021, as described in note 1. · R$ 179,875 in right-of-use assets due to remeasurement of contracts, including changes in the term and scope of leases. Balance in December 2019 Additions Write-offs (i) Transfers Balance in December 2020 Total cost of property, plant and equipment, gross 43,358,751 4,687,207 (616,791) - 47,429,167 Commutation/transmission equipment 22,817,681 10,464 (174,249) 3,222,020 25,875,916 Fiber optic cables 813,589 - - 64,511 878,100 Leased handsets 2,489,995 912 (7,140) 159,569 2,643,336 Infrastructure 6,096,847 92,234 (8,063) 255,554 6,436,572 Informatics assets 1,721,251 1 (9,996) 59,130 1,770,386 General use assets 859,505 1 (1,544) 44,325 902,287 Right-of-use assets 6,933,416 1,849,539 (415,060) - 8,367,895 Land 40,794 - - - 40,794 Construction in progress 1,585,673 2,734,056 (739) (3,805,109) 513,881 - Total accumulated depreciation (25,746,587) (3,767,678) 185,796 - (29,328,469) Commutation/transmission equipment (16,389,213) (1,906,480) 165,167 - (18,130,526) Fiber optic cables (410,567) (72,046) - - (482,613) Leased handsets (2,256,863) (143,309) 1,955 - (2,398,217) Infrastructure (3,593,833) (432,549) 7,528 - (4,018,854) Informatics assets (1,565,309) (62,649) 9,988 - (1,617,970) General use assets (590,658) (48,403) 1,158 - (637,903) Right-of-use assets (940,144) (1,102,242) - - (2,042,386) Total property, plant and equipment, net 17,612,164 919,529 (430,995) - 18,100,698 Commutation/transmission equipment 6,428,468 (1,896,016) (9,082) 3,222,020 7,745,390 Fiber optic cables 403,022 (72,046) - 64,511 395,487 Leased handsets 233,132 (142,397) (5,185) 159,569 245,119 Infrastructure 2,503,014 (340,315) (535) 255,554 2,417,718 Informatics assets 155,942 (62,648) (8) 59,130 152,416 General use assets 268,847 (48,402) (386) 44,325 264,384 Right-of-use assets 5,993,272 747,297 (415,060) - 6,325,509 Land 40,794 - - - 40,794 Construction in progress 1,585,673 2,734,056 (739) (3,805,109) 513,881 (i) The amount of R$ 415,060 is represented by remeasurement of contracts and includes changes in the term and scope of leases and a review of the estimate in relation to low-value vehicle contracts. The construction in progress represent the cost of projects in progress related to the construction of networks and/or other tangible assets in the period of their construction and installation, until the moment they come into operation, when they will be transferred to the corresponding accounts of these assets. The lease rights of use are represented by leased agreements of identifiable assets within the scope of IFRS16 standard. These rights refer to leases of network infrastructure, stores and kiosks, real estate, land (Network) and fiber, as below: Right-of-use assets Network infrastructure Shops & kiosks & real estate Land (Network) Fiber Total Balances at December 31, 2020 3,019,900 400,262 1,500,909 1,404,438 6,325,509 Additions 630,805 295,874 237,150 427,478 1,591,307 Remeasurement (83,606) (45,312) (23,772) (27,185) (179,875) Depreciation (518,590) (109,512) (210,054) (403,732) (1,241,888) Balances at December 31, 2021 3,048,509 541,312 1,504,233 1,400,999 6,495,053 Useful life – % 7.86 9.70 9.47 3.24 |
Schedule of depreciation rates | Schedule of depreciation rates · Depreciation rates Annual fee % Commutation/transmission equipment 08 14.29 Fiber optic cables 4 10 Leased handsets 14.28 50 Infrastructure 4 20 Informatics assets 10 20 General use assets 10 20 |
Intangible assets (Tables)
Intangible assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Schedule of movement in intangible assets | Schedule of movement in intangible assets (a) Changes in intangible assets Balance in December 2020 Additions/ Amortization Write-offs Transfers Balance in December 2021 Total cost of intangible assets, gross 31,444,050 4,352,331 (1,165,840) - 34,630,541 Right to use software 19,117,515 - (112,626) 906,115 19,911,004 Authorizations 9,931,248 50,408 (1,737) 1,171,578 11,151,497 Goodwill (i) 1,527,220 - (1,051,477) - 475,743 Infrastructure right-of-use - LT Amazonas 177,866 - - 8,355 186,221 Other assets 329,626 - - 3,490 333,116 Intangible assets under development 360,575 4,301,923 - (2,089,538) 2,572,960 Total accumulated amortization (22,416,975) (1,739,937) 111,450 - (24,045,462) Right to use software (16,378,487) (1,164,210) 110,679 - (17,432,018) Authorizations (5,816,241) (542,196) 771 - (6,357,666) Infrastructure right-of-use - LT Amazonas (67,966) (8,731) - - (76,697) Other assets (154,281) (24,800) - (179,081) Total intangible assets, net 9,027,075 2,612,394 (1,054,390) - 10,585,079 Right to use software (c) 2,739,028 (1,164,210) (1,947) 906,115 2,478,986 Authorizations (f) 4,115,007 (491,788) (966) 1,171,578 4,793,831 Goodwill (d) 1,527,220 - (1,051,477) - 475,743 Infrastructure right-of-use - LT Amazonas (e) 109,900 (8,731) - 8,355 109,524 Other assets 175,345 (24,800) - 3,490 154,035 Intangible assets under development 360,575 4,301,923 - (2,089,538) 2,572,960 (i) Includes the write-off of approximately 90% of the total goodwill recorded on the acquisition of TIM Fiber SP Ltda. and TIM Fiber RJ S.A., in the amount of R$ 1,051,477. Balance in December 2019 Balance of merged company Additions/ Amortization Write-offs Transfers Balance in December 2020 Total cost of intangible assets, gross 29,861,788 367,571 1,215,636 (945) - 31,444,050 Right to use software 18,184,382 - - (939) 934,072 19,117,515 Authorizations 9,811,794 - 32,105 (6) 87,355 9,931,248 Goodwill 1,159,649 367,571 - - - 1,527,220 Infrastructure right-of-use - LT Amazonas 169,327 - 8,539 - - 177,866 Other assets 327,360 - - - 2,266 329,626 Intangible assets under development 209,276 - 1,174,992 - (1,023,693) 360,575 Total Accumulated Amortization (20,561,032) (1,856,917) 974 - (22,416,975) Right to use software (15,093,166) - (1,286,295) 974 - (16,378,487) Authorizations (5,278,413) - (537,828) - - (5,816,241) Infrastructure right-of-use - LT Amazonas (60,204) - (7,762) - - (67,966) Other assets (129,249) - (25,032) - (154,281) Total intangible assets, net 9,300,756 367,571 (641,281) 29 - 9,027,075 Right to use software (c) 3,091,216 - (1,286,295) 35 934,072 2,739,028 Authorizations (f) 4,533,381 - (505,723) (6) 87,355 4,115,007 Goodwill (d) 1,159,649 367,571 - - - 1,527,220 Infrastructure right-of-use - LT Amazonas (e) 109,123 - 777 - - 109,900 Other assets 198,111 - (25,032) - 2,266 175,345 Intangible assets under development 209,276 - 1,174,992 - (1,023,693) 360,575 |
Schedule of amortization rates | Schedule of amortization rates (b) Amortization rates Annual fee % Software licenses 20 Authorizations 5 50 Right to use infrastructure 5 Other assets 7 10 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Schedule of lease receivables | Asset leases are financial assets or liabilities classified and/or measured at amortized cost. Schedule of lease receivables Assets 2021 2020 LT Amazonas 166,944 162,198 Subleases - Stores – IFRS 16 76,177 - 243,121 162,198 Current portion (30,076) (5,357) Non-current portion 213,045 156,841 |
Schedule of lease receivables nominal and present value | The table below presents the schedule of cash receipts for the agreement currently in force, representing the estimated receipts (nominal values) in the signed agreements. These balances differ from those shown in the books since, in the case of the latter, the amounts are shown at present value: Schedule of lease receivables nominal and present value Up to December 2022 Jan 2023–Dec 2026 Jan 2027 onwards Nominal values Present value 55,939 167,320 176,895 400,154 243,121 LT Amazonas (i) 26,124 106,491 176,895 309,510 166,944 Subleases - Stores – IFRS 16 (ii) 29,815 60,829 - 90,644 76,177 (i) LT Amazonas |
Schedule of lease liabilities | Schedule of lease liabilities 2021 2020 LT Amazonas (i) 302,091 290,385 Sale of Towers ( leaseback (ii) 1,507,629 1,256,410 Other (iv) 142,458 115,027 Sub-total 1,952,178 1,661,822 Other leases (iii) Leases – Network Infrastructure 3,345,930 3,252,463 Leases - Shops & kiosks & real estate 653,422 434,990 Leases - Land (Network) 1,657,345 1,606,567 Leases – Fiber 1,454,664 1,422,993 Subtotal lease IFRS 16 7,111,361 6,717,013 Total 9,063,539 8,378,835 Current portion (1,269,878) (1,054,709) Non-current portion 7,793,661 7,324,126 |
Schedule of other lease operations | The table below presents the future payment schedule for the agreements in force, representing the estimated disbursements (nominal values) in the signed agreements. These nominal balances differ from those shown in the books since, in the case of the latter, the amounts are shown at present value: Schedule of other lease operations Up to December 2022 Jan 2023–Dec 2026 Jan 2027 onwards Nominal values Present value Total - Lease liability 2,139,718 6,431,022 5,898,599 14,469,339 9,063,539 LT Amazonas (i) 57,349 202,271 336,138 595,758 302,091 Sale and leaseback of Towers (ii) 245,800 992,299 2,135,989 3,374,088 1,507,629 Other (iv) 28,348 112,493 142,458 283,299 142,458 Total other leases (iii) 1,808,221 5,123,959 3,284,014 10,216,194 7,111,361 Leases – Network infrastructure 752,818 2,450,689 1,735,619 4,939,126 3,345,930 Leases - Shops & kiosks & real estate 183,468 440,996 356,198 980,662 653,422 Leases - Land (Network) 340,099 1,135,266 1,192,197 2,667,562 1,657,345 Leases – Fiber 531,836 1,097,008 - 1,628,844 1,454,664 |
Supplier (Tables)
Supplier (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Schedule of supplier accounts payable | Schedule of supplier accounts payable 2021 2020 3,267,404 3,128,732 Local currency 3,063,458 2,932,486 Suppliers of materials and services (i) 2,966,897 2,839,547 Interconnection (ii) 65,464 64,066 Roaming (iii) 212 212 Co-billing (iv) 30,885 28,661 Foreign currency 203,946 196,246 Suppliers of materials and services (i) 153,082 148,888 Roaming (iii) 50,864 47,358 Current portion 3,267,404 3,128,732 (i) Represents the amount to be paid to suppliers in the acquisition of materials and in the provision of services applied to the tangible and intangible asset or for consumption in the operation, maintenance and administration, in accordance with the terms of the contract between the parties. (ii) Refers to as the use of the network of other fixed and mobile operators such cases where calls are initiated on the TIM network and terminated on the other operators. (iii) Refers to calls made when the customer is outside their registration area and is considered a visitor on the other network. (vi) Refers to calls made by the customer when choosing another long-distance operator. |
Authorizations payable (Tables)
Authorizations payable (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Authorizations Payable | |
Schedule of licenses payables | Schedule of licenses payables 2021 2020 Renewal of authorizations (i) 191,329 188,498 Updated ANATEL liability (ii) 164,269 146,949 Authorizations payable (iii) 3,525,489 - Total 3,881,087 335,447 Current portion (2,630,169) (102,507) Non-current portion 1,250,918 232,940 (i)To provide the SMP, the Company obtained authorizations of the right to use radio frequency for a fixed term, renewable for another 15 (fifteen) years. In the option for the extension of the right of this use, it is due the payment of the amount of 2% on the net revenue of the region covered by the authorization that ends each biennium. On December 31, 2021, the Company had balances falling due related to renovation of authorizations in the amount of R$ 191,329 (R$ 188,498 on December 31, 2020). (ii) On December 5, 2014, the company signed the authorization term of the 700 MHz band and paid the equivalent of R$1,678 million, recording the remaining balance in the amount of R$ 61 million as commercial liability, according to the payment method provided for in the notice. On June 30, 2015, the company filed a lawsuit questioning the collection of the excess nominal value of R$ 61 million (R$ 164 million on December 31, 2021) which is still pending trial. (iii) As described in note 15.f, in November 2021, TIM participated in the 5G Auction of the 2.3GHz, 3.5Ghz and 26Ghz radio frequency bands for the deployment of the 5th Generation mobile telephony, winning several lots in these radio frequencies. In December 2021, the Authorization Terms were signed, characterizing the actual acquisition of the right over the lots of these radio frequencies. For the amounts related to radio frequencies (R$ 884 million upon initial registration), Selic interest is levied, and the Company will make annual payments for a period of 20 years. Regarding amounts related to disbursement obligations with EAF and EACE entities (R$ 2,737 million upon initial registration, of which R$ 2,654 million net of adjustment do present value), there is a monetary restatement by IGP-DI, and disbursements will occur between 2022 and 2024. As of December 31, 2021, the outstanding balance is 3,525 million. |
The authorizations payable on December 31, 2021 due in long-term is in accordance with the following schedule: | The authorizations payable on December 31, 2021 due in long-term is in accordance with the following schedule: 2023 406,371 2024 141,151 2025 46,535 2026 46,535 2027 46,535 2028 46,535 2029 46,535 2030 46,535 2031 424,186 Total 1,250,918 |
The primary authorizations held by TIM S.A. on December 31, 2021, as well as their expiration dates, are shown in the table below: | The primary authorizations held by TIM S.A. on December 31, 2021, as well as their expiration dates, are shown in the table below: Maturity date Terms of authorization 450 MHz 800 MHz, 900 MHz and 1,800 MHz Additional frequencies 1800 MHz 1900 MHz and 2100 MHz (3G) 2500 MHz V1 band (4G) 2500 MHz ( P band** (4G) 700 MHz (4G) 2.3 GHz (5G) 3.5 GHz (5G) 26 GHz (5G) Amapá, Roraima, Pará, Amazonas and Maranhão - Mar 2031* Apr 2023 Apr 2023 Oct 2027 Part of AR92 (PA), Feb 2024* Dec 2029 - Dec 2041 Dec 2031 Rio de Janeiro and Espírito Santo Oct 2027 Mar 2031* ES, Apr 2023 Apr 2023 Oct 2027 Part of AR21 (RJ), Feb 2024* Dec 2029 Dec 2041 Dec 2041 Dec 2031 (lots I&J) & Dec 2041 (lot H) Acre, Rondônia, Mato Grosso, Mato Grosso do Sul, Tocantins, Distrito Federal, Goiás, Rio Grande do Sul (except county of Pelotas and region) and municipalities of Londrina and Tamarana in Paraná PR, Oct 2027 Mar 2031* Apr 2023 Apr 2023 Oct 2027 Part of AR61 (DF), Feb 2024* Dec 2029 South – Dec 2041 Dec 2041 Dec 2031 (lots I&J) & Dec 2041 (lot H) São Paulo - Mar 2031* Countryside, Apr 2023 Apr 2023 Oct 2027 - Dec 2029 - Dec 2041 Dec 2031 (lots I&J) & Dec 2041 (lot H) Paraná (except counties of Londrina and Tamarana) Oct 2027 Sep 2022* Apr 2023 Apr 2023 Oct 2027 AR41, except Curitiba and the Metropolitan Region, Feb 2024* AR41, Curitiba and Metropolitan Region, July 2031 Dec 2029 Dec 2041 Dec 2041 Dec 2031 (lots I&J) & Dec 2041 (lot H) Santa Catarina Oct 2027 Sep 2023* Apr 2023 Apr 2023 Oct 2027 - Dec 2029 Dec 2041 Dec 2041 Dec 2031 (lots I&J) & Dec 2041 (lot H) County and region of Pelotas, in the state of Rio Grande do Sul - Apr 2024* - Apr 2023 Oct 2027 - Dec 2029 Dec 2041 Dec 2041 Dec 2031 (lots I&J) & Dec 2041 (lot H) Pernambuco - May 2024* - Apr 2023 Oct 2027 Part of AR81, July 2031 Dec 2029 - Dec 2041 Dec 2031 Ceará - Nov 2023* - Apr 2023 Oct 2027 - Dec 2029 - Dec 2041 Dec S2031 Paraíba - Dec 2023* - Apr 2023 Oct 2027 - Dec 2029 - Dec 2041 Dec 2031 Rio Grande do Norte - Dec 2023* - Apr 2023 Oct 2027 - Dec 2029 - Dec 2041 Dec 2031 Alagoas - Dec 2023* - Apr 2023 Oct 2027 - Dec 2029 - Dec 2041 Dec 2031 Piauí - Mar 2024* - Apr 2023 Oct 2027 - Dec 2029 - Dec 2041 Dec 2031 Minas Gerais (except the counties of Sector 3 of the PGO for 3G radio frequencies, leftovers and 5G) - Apr 2028* Apr 2023 Apr 2023 Oct 2027 Part of AR31, Feb 2030* Dec 2029 Dec 2041 Dec 2041 Dec 2031 (lots I&J) & Dec 2041 (lot H) Bahia and Sergipe - Aug 2027* - Apr 2023 Oct 2027 - Dec 2029 - Dec 2041 Dec 2031 * Terms already renewed for 15 years. ** Only complementary areas in specific states. |
Loans and financing (Tables)
Loans and financing (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Schedule of appropriation of financial expenses | At the initial recognition they are recorded by their fair value, and after initial recognition, they are measured by the effective interest rate method. Appropriations of financial expenses according to the effective interest rate method are recognized in income, under financial expenses. Schedule of appropriation of financial expenses Description Currency Charge Maturity December 2021 December 2020 KFW Finnvera (ii) USD Libor 6M+ 0.75% p.a. Jan 2024–Dec 2025 278,176 344,125 BAML (ii EUR 0.2790% p.a. Aug 2021 - 570,844 Scotia¹ ( ii) USD 1.2410–1.7340% p.a. Apr 2024 559,650 1,030,761 BNP Paribas (ii) USD 2.8220% p.a. Jan 2022 428,793 399,302 BNP Paribas (ii) BRL 7.0907% p.a. Jan 2024 515,166 - Debêntures² (ii) BRL IPCA + 4.1682% p.a. (i) June 2028 1,667,399 - BNDES (i) BRL IPCA + 4.2283% p.a. Nov 2031 396,281 - Total 3,845,465 2,345,032 Current (538,450) (1,689,385) Non-current 3,307,015 655,647 ¹ The outstanding debt rate on December 31, 2021 with Scotia Bank is 1.4748% p.a. ² The automatic decrease of up to 0.25bps is estimated in remunerative interest will comply with sustainable targets established in the indenture. Insurances (i) Certain receivables from TIM S.A.; (ii) Do not have a guarantee. |
Schedule of credit facilities | The table below shows the position of financing and available lines of credit: Schedule of credit facilities Amount used until 30 September 2020 Type Currency Term Term Remaining value Amount used up to December 31, 2021 BNDES (i) TJLP May 2018 Mar 2022 1,090,000 1,090,000 - BNDES (ii) TJLP May 2018 Mar 2022 20,000 20,000 - FINAME (iii) IPCA Mar 2019 Mar 2022 390,000 - 390,000 BNB (iv) IPCA Jan 2020 June 2023 752,479 752,479 - Total R$: 2,252,479 1,862,479 390,000 Objective: (i) Support to TIM's investment plan for the years 2017 to 2019 including, but not limited to, the acquisition of National equipment (ii) Investments in social projects within the community (iii) Exclusive application in the acquisition of machinery and equipment, industrial systems and/or other components of national manufacture. (iv) Support to TIM's investment plan for the years 2020 to 2022 in the region of operation of Banco do Nordeste do Brasil |
Schedule of long term portions of borrowing and financing | Loans and financing on December 31, 2021 due in long-term is in accordance with the following schedule: Schedule of long term portions of borrowing and financing 2023 88,818 2024 1,125,526 2025 80,712 2026 615,727 2027 615,727 2028 618,006 2029 55,714 2030 55,714 2031 51,071 3,307,015 |
Schedule of nominal value of the loans | The nominal value of the loans and financing is consistent with their respective payment schedule. Schedule of nominal value of the loans Nominal value 2022 538,450 2023 88,818 2024 1,125,526 2025 80,712 2026 615,727 2027 615,727 2028 618,006 2029 55,714 2030 55,714 2031 51,071 3,845,465 |
Indirect taxes, charges and c_2
Indirect taxes, charges and contributions payable (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Indirect Taxes Charges And Contributions Payable | |
Schedule of indirect taxes, charges and contributions payable | Schedule of indirect taxes, charges and contributions payable 2021 2020 Indirect taxes, charges and contributions payable 1,421,955 938,880 Value added tax on goods and services - ICMS 303,721 359,498 ANATEL’s taxes and fees (i) 1,042,933 509,087 Imposto sobre Serviço 66,075 66,082 Other 9,226 4,213 Current portion (1,418,682) (935,778) Non-current portion 3,273 3,102 |
Direct taxes, charges and con_2
Direct taxes, charges and contributions payable (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Direct Taxes Charges And Contributions Payable | |
Schedule of direct taxes charges and contributions payable | The legislation allows companies to opt for quarterly or monthly payment of income tax and social contribution. In 2021, the Company has chosen to make the quarterly payment of income tax and social contribution. Schedule of direct taxes charges and contributions payable 2021 2020 Direct taxes, charges and contributions payable 258,340 508,743 Income tax (IR) and social contribution (CS) (i) 186,294 313,145 PIS/COFINS (Social integration program/Social security) 41,916 154,353 Other (ii) 30,130 41,245 Current portion (245,113) (296,299) Non-current portion 13,227 212,444 |
Deferred revenues (Tables)
Deferred revenues (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Schedule of deferred revenue | Schedule of deferred revenue 2021 2020 Deferred revenues 886,340 1,021,924 Prepaid services (i) 118,795 189,482 Government grants (ii) 11,184 24,732 Anticipated revenues 8,522 11,163 Deferred revenues on sale of towers (iii) 734,826 788,921 Contractual liabilities (iv) 13,013 7,626 Current portion (197,179) (266,436) Non-current portion 689,161 755,488 (i) Referring to the recharge of voice credits and data not yet used by customers relating to prepaid system services that are appropriate to the result when the actual use of these services by clients. (ii) Referring to the release of resources related to the financing line with BNDES (Investment Support Program-BNDES PSI). The sum of grants granted by BNDES up to December 31, 2021 is R$ 203 11,184 24,732 (iii) Referring to the amount of revenue to be appropriated by the sale of the towers (note 16). (iv) Contracts with customers. The table below includes information on the portion of trade accounts receivable, from which contractual assets and liabilities originate. |
Schedule of contractual assets and liabilities | Schedule of contractual assets and liabilities 2021 Accounts receivable included in trade accounts 2,051,120 Contractual assets 15,340 Contractual liabilities (13,013) |
Summary of the main changes during the fiscal year: | Summary of the main variations in the year. Summary of the main changes during the fiscal year: Contractual assets (liabilities) Balance at December 31, 2020 7,288 Additions 8,800 Write-offs (13,761) Balance at December 31, 2021 2,327 |
Schedule of balances of contractual assets and liabilities are expected to be realized | The balances of contractual assets and liabilities are expected to be realized according to the table below: Schedule of balances of contractual assets and liabilities are expected to be realized 2022 2023 Contractual assets (liabilities) 3,685 (1,358) |
Provision for legal and admin_2
Provision for legal and administrative proceedings (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
The provision for judicial and administrative proceedings constituted, updated, is composed as follows: | The provision for judicial and administrative proceedings constituted, updated, is composed as follows: 2021 2020 Provision for judicial and administrative proceedings 960,881 886,947 Civil (a) 309,019 245,432 Labor (b) 192,132 213,026 Tax (c) 429,951 399,288 Regulatory (d) 29,779 29,201 |
The changes in the provision for judicial and administrative proceedings are summarized below: | The changes in the provision for judicial and administrative proceedings are summarized below: December 31, 2020 Additions, net of reversals Payment Currency update December 31, 2021 886,947 278,789 (316,804) 111,949 960,881 Civil (a) 245,432 175,715 (194,501) 82,373 309,019 Labor (b) 213,026 71,961 (98,730) 5,875 192,132 Tax (c) 399,288 31,078 (23,539) 23,124 429,951 Regulatory (d) 29,201 35 (34) 577 29,779 December 31, 2019 Balance company incorporated Additions, net of reversals Payment Currency update December 31, 2020 703,522 125,956 333,724 (413,634) 137,379 886,947 Civil (a) 208,202 4,501 224,416 (266,872) 75,185 245,432 Labor (b) 208,224 45,691 63,649 (138,899) 34,361 213,026 Tax (c) 254,833 75,646 48,897 (7,792) 27,704 399,288 Regulatory (d) 32,263 118 (3,238) (71) 129 29,201 |
Tax lawsuits | c. Tax lawsuits 2021 2020 Federal Taxes 202,743 182,146 State Taxes 145,436 135,891 Municipal Taxes 7,626 5,633 TIM S.A. processes (Purchase price allocation) 74,146 75,618 429,951 399,288 |
The company has actions of a civil, labor, tax and regulatory nature involving risks of loss classified by its legal advisers and the administration as possible, for which there is no provision for legal and administrative proceedings constituted, and no adverse material effects are expected in the financial statements, according to the values presented below: | The company has actions of a civil, labor, tax and regulatory nature involving risks of loss classified by its legal advisers and the administration as possible, for which there is no provision for legal and administrative proceedings constituted, and no adverse material effects are expected in the financial statements, according to the values presented below: 2021 2020 18,140,556 18,147,562 Civil (e. 1) 1,292,202 1,101,332 Labor and Social Security (e. 2) 392,035 340,801 Tax (e. 3) 16,309,439 16,586,353 Regulatory (e. 4) 146,880 119,076 |
The main actions with risk of loss classified as possible are described below: | The main actions with risk of loss classified as possible are described below: e.1. Civil 2021 2020 Consumer actions (e. 1. 1) 160,696 220,347 ANATEL (e.1.2) 258,683 223,066 Consumer protection bodies (e.1.3) 493,806 160,279 Former trading partners (e.1.4) 216,054 193,529 Environmental and infrastructure (e.1.5) 99,743 154,187 Other (e.1.6) 63,220 149,924 1,292,202 1,101,332 |
Tax | e.3. Tax 2021 2020 16,309,439 16,586,353 Federal taxes (e. 3.1) 3,026,326 4,268,212 State taxes (e. 3. 2) 8,782,114 8,562,352 Municipal taxes (e. 3. 3) 1,234,618 740,813 FUST, FUNTTEL e EBC (e.3.4) 3,266,381 3,014,976 |
Shareholders' equity (Tables)
Shareholders' equity (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Schedule of reserves | The use of capital reserves complies with the precepts of art. 200 of Law 6404/76, which provides for Joint-Stock Companies. This reserve is composed as follows: Schedule of reserves 2021 2020 Capital reserves 401,806 397,183 Special Reserve of goodwill 353,604 353,604 Long-term incentive plan 48,202 43,579 |
Schedule of dividends calculation | As of December 31, 2021, and 2020, dividends and interest on shareholders' equity were calculated as follows: Schedule of dividends calculation 2021 2020 Net profit for the year 2,957,174 1,828,254 (-) non-distributable tax incentives (176,741) (169,540) (-) Constitution of legal reserve (139,021) (83,707) Adjusted Net Profit 2,641,412 1,575,007 Minimum dividends calculated on the basis of 25% of adjusted profit 660,353 397,752 Breakdown of dividends payable interest on equity: Interest on shareholders' equity 1,047,500 1,083,000 Total dividends and interest on shareholders' equity distributed and proposed 1,047,500 1,083,000 Withholding income tax (IRRF) on interest on shareholders' equity (142,977) (162,450) Total dividends and interest on shareholders’ equity, net 904,523 920,550 |
During 2021, the amount of R$ 1,047,500 | During 2021, the amount of R$ 1,047,500 Interest on shareholders’ equity Approval Payment R$ 350,000 06/09/2021 07/20/2021 R$ 137,500 09/24/2021 10/27/2021 R$ 560,000 12/15/2021 01/25/2022 |
Long-Term Incentive Plan (Table
Long-Term Incentive Plan (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Schedule of variations in quantity of options | Schedule of variations in quantity of options Stock Options Program Table Grant date Options granted Expiry date Base Price Balance at the beginning of the year Granted during the year Exercise during exercise Expired during exercise Overdue during the year Balance at the end of the year 2014-2016 Plan – 3rd Grant 3,922,204 Nov 2022 R$ 8.10 295,063 - (182,511) - - 112,552 2014-2016 Plan – 2nd Grant 3,355,229 Oct 2021 R$ 8.45 21,771 - (21,771) - - 0 Plan 2014-2016-1st Grant 1,687,686 Sep 2020 R$ 13.42 - - - - - - 2011-2013 Plan – 3rd Grant 3,072,418 July 2019 R$ 8.13 - - - - - - 2011-2013 Plan – 2nd Grant 2,661,752 Sep 2018 R$ 8.96 - - - - - - 2011-2013 Plan – 1st Grant 2,833,595 Aug 2017 R$ 8.84 - - - - - - Total 17,532,884 316,834 - (204,282) - - 112,552 Weighted average price of the balance of grants R$ 8.10 Stock Program Table (Performance Shares and Restricted Shares) Identification of grant: Shares granted Expiry date Grant Price Balance at the beginning of the year Granted during the year Transferred during the year* Paid in cash* Canceled during the year Balance at the end of the year Volume Vested Performance change Additional Dividends Volume Vested Performance change Additional dividends 2021-2023 Plan 3,431,610 May 2024 R$ 12.95 - 3,431,610 - - - - - - (311,876) 3,119,734 2018-2020 Plan 796,054 Apr 2023 R$ 14.40 796,054 - (206,578) (51,634) (8,933) - - - (70,378) 519098 2018-2020 Plan 930,662 July 2022 R$ 11.28 687,895 - (207,859) (78,111) (23,252) - - - (53,006) 427,030 2018-2020 Plan 849,932 Apr 2021 R$ 14.41 199,594 - (187,039) (42,854) (22,250) (9,101) (2,305) (1,094) (3,454) - Total 6,008,258 1,683,543 3,431,610 (601,476) (172,599) (54,435) (9,101) (2,305) (1,094) (438,714) 4,065,862 Weighted average price of the balance of grants R$ 12.96 |
Schedule of significant data included in model | Schedule of significant data included in model The significant data included in the model, for the Stock Option Grants, was as follows: Grant date Base price - weighted average share in the period of measurement of the grant Volatility Expected life of the option Annual interest rate without risk 2011 Grant R$ 8.84 51.73% p.a. 6 years 11.94 2012 Grant R$ 8.96 50.46% p.a. 6 years 8.89 2013 Grant R$ 8.13 48.45% p.a. 6 years 10.66 2014 Grant R$ 13.42 44.60% p.a. 6 years 10.66 2015 Grant R$ 8.45 35.50% p.a. 6 years 16.10 2016 Grant R$ 8.10 36.70% p.a. 6 years 11.73 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Schedule of revenue | All incremental costs related to obtaining a contract (sales commissions and other costs of acquisition from third parties) are recorded as prepaid expenses and (as described in note 11) amortized over the same period as the revenue associated with this asset. Similarly, certain contract compliance costs are also deferred to the extent that they relate to performance obligations under the customer agreement, i.e. when the customer obtains control over the asset. Schedule of revenue 2021 2020 2019 Net revenue 18,058,027 17,267,812 17,377,194 Gross revenue 25,357,429 24,346,101 25,182,831 Service revenue 24,264,246 23,279,423 23,820,343 Service revenue-Mobile 22,433,225 21,522,135 22,145,033 Service revenue - Landline 1,831,021 1,757,288 1,675,310 Goods sold 1,093,183 1,066,678 1,362,488 Deductions from gross revenue (7,299,402) (7,078,289) (7,805,637) Taxes incidents (4,679,722) (4,534,582) (4,939,980) Discounts granted (2,610,388) (2,531,920) (2,843,670) Returns and other (9,292) (11,787) (21,987) |
Operating costs and expenses (T
Operating costs and expenses (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Schedule of operating cost and expences | Schedule of operating cost and expences 2021 2020 Cost of services rendered and goods sold Selling expenses General and administrative expenses Total Cost of services rendered and goods sold Selling expenses General and administrative expenses Total (8,443,023) (4,621,788) (1,723,384) (14,788,195) (7,996,615) (4,443,027) (1,673,290) (14,112,932) Personal (62,214) (676,479) (387,735) (1,126,428) (58,024) (632,231) (321,967) (1,012,222) Third party services (560,039) (1,763,360) (668,641) (2,992,040) (587,835) (1,743,644) (538,584) (2,870,063) Interconnection and means of connection (1,840,139) - - (1,840,139) (1,672,655) - - (1,672,655) Depreciation and amortization (4,847,995) (265,565) (578,136) (5,691,696) (4,569,064) (247,666) (710,282) (5,527,012) Taxes, fees and contributions (34,732) (777,819) (29,388) (841,939) (28,675) (761,152) (23,809) (813,636) Rent and insurance (362,171) (109,781) (20,082) (492,034) (316,650) (107,550) (15,753) (439,953) Cost of goods sold (731,007) - - (731,007) (756,060) - - (756,060) Publicity and advertising - (459,811) - (459,811) - (377,184) - (377,184) Expected credit losses of trade accounts receivable - (544,642) - (544,642) - (552,817) - (552,817) Other (4,726) (24,331) (39,402) (68,459) (7,652) (20,783) (62,895) (91,330) 2019 Cost of services provided and goods sold Seling expenses General and administrative expenses Total (7,433,731) (4,986,289) (1,717,859) (14,137,879) Personnel (53,392) (624,353) (392,984) (1,070,729) Third-party services (569,242) (2,041,646) (512,643) (3,123,531) Interconnection and means of connection (1,419,464) - - (1,419,464) Depreciation and amortization (4,132,223) (256,898) (739,860) (5,128,981) Taxes, fees and contributions (32,120) (817,369) (18,846) (868,335) Rent and insurance (291,302) (121,795) (20,590) (433,687) Cost of goods sold (931,818) - - (931,818) Publicity and advertising - (355,234) - (355,234) Expected credit losses of trade accounts receivable - (748,291) - (748,291) Other (4,170) (20,703) (32,936) (57,809) |
Other income (expenses), net (T
Other income (expenses), net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other Income Expenses Net | |
Schedule of other income (expenses) | Schedule of other income (expenses) 2021 2020 2019 Income Income from grant, net 13,548 17,427 21,572 Fines on telecommunications services 58,793 37,490 50,499 Revenue on disposal of assets (ii) 2,711,535 5,375 2,214 PIS/COFINS credits (i) - - 1,795,000 Other income 65,482 68,651 83,558 Total Revenue 2,849,358 128,943 1,952,843 Expenses FUST/FUNTTEL (iii) (134,962) (133,378) (137,169) Taxes, fees and contributions (2,274) (10,316) (4,024) Provision for legal and administrative proceedings, net of reversal (248,987) (290,789) (466,460) Expense on disposal of assets (ii) (1,942,791) (13,538) (7,055) Other expenses (22,573) (32,776) (62,593) Total Expenses (2,351,587) (480,797) (677,301) Other income (expenses), net 497,771 (351,854) 1,275,542 (i) The change refers to the update of claims arising from judicial proceedings with a final decision passed in favor of the company in higher courts, in 2019, which discussed the exclusion of ICMS from calculation basis of PIS and COFINS contributions. The amount of R$ 1,795 million was recorded under Other income in 2019 (note 9). (ii) Represents the revenue from the sale of 51% equity interest in I-Systems (formerly FiberCo) to IHS, in the amount of R$ 2,709,251, which is composed of the (secondary) cash paid to TIM S.A. and the fair value of the minority interest of 49% that remained with TIM S.A. In expenses, the amount of 1,927,014 is represented by the write-off of the net assets written-off at TIM S.A. and paid-in as share capital at I-Systems, in addition to the write-off of goodwill and deferred income tax related to goodwill due to the sale of 51% of I -Systems (formerly FiberCo). The gain on this transaction before income tax and social contribution is R$ 782,237. See note 1. (iii) Representing the expenses incurred with contributions on the various telecommunications revenues due to ANATEL, according to current legislation.S |
Financial income (Tables)
Financial income (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Schedule of financial income | Schedule of financial income 2021 2020 2019 Financial income 1,091,748 438,598 1,430,171 Interest on financial investments 339,681 82,512 88,224 Interest received from clients 28,427 28,686 37,233 Swap interest 203,852 32,955 15,536 Interest on lease 24,788 19,924 20,528 Inflation adjustment (i) 208,029 116,441 1,263,793 Other derivatives (ii) 285,009 155,165 - Other income 1,962 2,915 4,857 (i) A substantial part is related to the monetary restatement on judicial and administrative proceedings and judicial deposits. (ii) It is the difference between the market cost and value of the share subscription option related to Banco C6 partnership; therefore, the mark-to-market value of these derivatives includes a gain of R$ 285 million referring to the company’s stock option obtained through achievement of contractual target defined in an operational partnership started in 2020. The market value was calculated based on information available in the last investment transaction carried out by the partner and disclosed in the market. The disclosures of this derivative financial instrument are detailed in note 37, which was measured at fair value, and will subsequently be measured in the Company’s income, also considering the risks related to arbitration disclosed in note 27. |
Financial expenses (Tables)
Financial expenses (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Schedule of financial expenses | Schedule of financial expenses 2021 2020 2019 Financial expenses (1,745,213) (1,242,255) (1,408,053) Interest on loans and financing (99,183) (70,400) (116,735) Interest on taxes and fees (61,745) (43,616) (28,396) Swap interest (352,029) (45,970) (24,604) Interest on lease (845,033) (766,263) (821,463) Inflation adjustment (i) (247,200) (161,892) (191,309) Discounts granted (52,509) (33,725) (36,047) Other expenses (87,514) (120,389) (189,499) (i) Substantial portion related to the inflation adjustment of lawsuits, in the amount of R$ 111,949 - see note 24 (R$ 137,379 as of December 31, 2020). |
Foreign exchange variations, _2
Foreign exchange variations, net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Foreign Exchange Variations Net | |
Schedule of foreign exchange variations | Schedule of foreign exchange variations 2021 2020 2019 Revenues Loans and financing (ii) 215,262 - 22,494 Suppliers 13,190 15,981 9,004 Swap (i) 275,836 305,012 40,742 Other 16,640 43,155 15,952 520,928 364,148 88,192 Expenses Loans and financing (ii) (275,724) (305,010) (40,715) Suppliers (20,061) (46,112) (13,201) Swap (i) (215,262) - (22,493) Other (9,222) (19,991) (12,691) (520,269) (371,113) (89,100) Foreign exchange variations, net 659 (6,965) (908) (i) Referring to derivative financial instruments to mitigate risks of foreign exchange variations related to foreign currency debts (note 37). (ii) It mainly refers to foreign exchange variation on loans and financing in foreign currency. |
Expense with current and defe_2
Expense with current and deferred income tax and social contribution (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Schedule of income tax and social contribution | Schedule of income tax and social contribution 2021 2020 2019 Current income tax and social contribution Income tax for the period 9,697 (684,099) (155,521) Social contribution for the period 26,538 (232,671) (58,905) Tax incentive – SUDENE/SUDAM (i) 167,118 164,442 156,594 Current income tax 203,353 (752,328) (57,832) Deferred income tax and social contribution Deferred income tax (255,972) 453,127 (625,516) Deferred social contribution (93,432) 144,722 (225,186) Deferred income tax (349,404) 597,849 (850,702) Provision for income tax and social contribution contingencies - (9,671) (5,406) Deferred income tax, net of tax (349,404) 588,178 (856,108) Income tax and social contribution (146,051) (164,150) (913,940) |
The reconciliation of income tax expense and social contribution calculated by applying the combined tax rates with the values reflected in the result is shown below: | The reconciliation of income tax expense and social contribution calculated by applying the combined tax rates with the values reflected in the result is shown below: 2021 2020 2019 Income before income tax and social contribution 3,103,225 1,992,404 4,536,067 Combined tax rate 34 34 34 Combined tax rate on income tax and social contribution (1,055,097) (677,417) (1,542,263) (Additions) / deletions: Permanent additions and exclusions: Non-taxable revenues 135,465 11,370 7,790 Non-deductible expenses for tax purposes (53,505) (42,329) (18,748) Tax incentive – SUDENE/SUDAM (i) 167,118 164,442 194,161 Tax benefit related to interest on shareholders’ equity 356,150 368,220 338,449 Sale I – Systems (formerly FiberCo) (ii) (335,935) - - IR/CS credit on Selic related do tax overpayment (iii) 534,804 - - Reversal of Provision for IR/CS - TIM Nordeste (iv) 87,565 - - Other amounts 17,384 11,564 106,670 Income before income tax 909,046 513,267 628,322 Income tax and social contribution recorded in income for the period (146,051) (164,150) (913,941) Effective rate 4.71% 8.24% 20.15% (i) As mentioned in note 25 c.3, in order for investment grants not to be computed in taxable income, they must be recorded as a tax incentive reserve, which can only be used to absorb losses or be incorporated into the share capital. TIM S.A. has tax benefits that fall under these rules. (ii) Refers to deferred taxes on goodwill written-off, according to the sale transaction described in Note 1, which took place in November 2021 between TIM S.A. and IHS. See note 15.d. (iii) As mentioned in note 9, in September 2021, the Federal Supreme Court (STF), with general repercussions, established an understanding for the non-levy of Corporate Income Tax (IRPJ) and Social Contribution (CSLL) on the monetary restatement using the SELIC rate in cases of undue payment. Although the aforementioned decision is still pending publication, as well as the specific TIM lawsuit is still pending judgment, TIM recorded its best estimate to date, in the amount of R$ 534 million, since the likelihood of a favorable outcome for the Company becomes probable. (iv) In the second quarter of 2021, there was a positive impact of R$ 87 million arising from the write-off of assets and reversal of the provision for income tax and social contribution, set up in 2009, due to the partial success in an administrative proceeding related to the merger of the company TIM Nordeste by TIM Celular. |
Earnings per share (Tables)
Earnings per share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Basic earnings per share are calculated by dividing profit attributable to Company’s shareholders by the weighted average number of shares issued during the year. | Basic earnings per share are calculated by dividing profit attributable to Company’s shareholders by the weighted average number of shares issued during the year. 2021 2020 2019 Income attributable to the shareholders of the company 2,957,174 1,828,254 3,622,127 Weighted average number of common shares issued (thousands) 2,420,314 2,420,804 2,420,481 Basic earnings per share (expressed in R$) 1.22 0.76 1.50 (b) Diluted earnings per share are calculated by adjusting the weighted average amount of shares outstanding to assume the conversion of all potential dilutive shares. 2021 2020 2019 Income attributable to the shareholders of the company 2,957,174 1,828,254 3,622,127 Weighted average number of common shares issued (thousands) 2,420,638 2,421,065 2,421,018 Diluted earnings per share (in R$) 1.22 0.76 1.50 |
Balances and transactions wit_2
Balances and transactions with related parties (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
The balances of transactions with Telecom Italia Group companies are as follows: | The balances of transactions with Telecom Italia Group companies are as follows: Assets 2021 2020 Telecom Italia Sparkle (i) 1,414 1,630 Gruppo Havas (vi) 83,613 - TI Sparkle (iii) 5,084 1,915 TIM Brasil (vii) 23,069 6,129 Telecom Italia S.p.A. (ii) 1,502 370 I Systems (ix ) 5,879 - Other 674 674 Total 121,235 10,718 Liabilities 2021 2020 Telecom Italia S.p.A. (ii) 71,288 75,317 Telecom Italia Sparkle (i) 3,689 10,576 TI Sparkle (iii) 10,205 7,333 TIM Brasil (iv) 6,558 6,145 Vivendi Group (v) 1,238 1,150 Gruppo Havas (vi) 19,794 24,068 I Systems ( viii) 31,596 - Other 4,585 2,797 Total 148,953 127,386 Revenue 2021 2020 2019 Telecom Italia S.p.A. (ii) 1,112 1,197 775 Telecom Italia Sparkle (i) 353 2,994 5,371 TI Sparkle (iii) 3,347 4,059 2,052 I Systems (ix) 5,881 - - Total 10,693 8,250 8,198 Cost / Expense 2021 2020 2019 Telecom Italia S.p.A. (ii) 105,137 110,407 93,188 Telecom Italia Sparkle (i) 19,219 27,485 24,914 TI Sparkle (iii) 20,533 19,923 18,700 Vivendi Group (v) 1,271 1,207 1,386 Gruppo Havas (vi) 206,349 207,682 264,318 I Systems ( viii) 31,596 - - Other 22,597 22,308 18,713 Total 406,702 389,012 421,219 (i) amounts refer to roaming wholesale (ii) The amounts refer to international roaming, technical assistance and value added services – VAS and licensing for the use of a registered trademark, granting TIM. S.A. the right to use the “TIM” brand upon payment of royalties in the amount of 0.5% of the company’s net revenue, with payment made on a quarterly basis. (iii) Values refer to link (iv) Mainly refer to judicial deposits made on account of labor causes and transfers of employees. (v) the values refer to Value Added Services-VAS. (vi) From the values described above, in the result, they refer to advertising services, of which, R$ 143,439 (R$ 195,117 on December 31, 2020), are related to media transfers. (vii) Refer to judicial deposits made on account of labor claims. (viii) The amounts refer to fiber infrastructure services. (ix) The amounts are related to services provided by TIM S.A., mainly related to network operation and maintenance in the scope of Transition Service Agreement, signed when closing the transaction. The company has social investment actions that include donations, projects developed by the Tim Institute and sponsorships. On December 31, 2021, the Company invested R$ 9,147 4,829 Balances on equity accounts are recorded in the groups: trade accounts receivable, prepaid expenses, suppliers and other current assets and liabilities. |
Management remuneration (Tables
Management remuneration (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
The payment of key management personnel for the provision of their services is presented below: | The key management personnel includes statutory directors and the Board of Directors. The payment of key management personnel for the provision of their services is presented below: 2021 2020 2019 Short-term benefits 31,494 23,949 22,524 Other long-term benefits 1,052 4,544 900 Share-based payments remuneration 15,176 6,343 5,379 Total compensation 47,722 34,836 28,803 |
Financial instruments and ris_2
Financial instruments and risk management (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
The consolidated derivative financial instruments are presented below: | The consolidated derivative financial instruments are presented below: 2021 2020 Assets Liabilities Assets Liabilities Derivative transactions 198,027 208,787 340,660 36,166 Other derivatives (i) 457,892 - 161,429 - 655,919 208,787 502,089 36,166 Current portion (134,292) (194,837) (262,666) (7,273) Non-current portion 521,627 13,950 239,423 28,893 (i) Other derivatives are instruments of share subscription options represent the option of the Company to subscribe 4.08 17.7 million 458 161 440.3 million |
The long-term derivative financial instruments on December 31, 2021 are due in accordance with the following schedule: | The long-term derivative financial instruments on December 31, 2021 are due in accordance with the following schedule: Assets 2023 39,335 2024 16,843 2025 onwards 465,449 521,627 |
Financial instruments measured at fair value: | Financial instruments measured at fair value: 2021 Level 1 Level 2 TOTAL Total assets 4,579,528 655,919 5,235,447 Financial assets at fair value through profit or loss 4,579,528 655,919 5,235,447 Derivative financial instruments - 198,027 198,027 Other derivatives - 457,892 457,892 Marketable securities 4,579,528 - 4,579,528 Total liabilities - 208,787 208,787 Financial liabilities at fair value through profit or loss - 208,787 208,787 Derivative financial instruments - 208,787 208,787 2020 Level 1 Level 2 TOTAL Total assets 2,077,499 502,089 2,579,588 Financial assets at fair value through profit or loss 2,077,499 502,089 2,579,588 Derivative financial instruments - 340,660 340,660 Other derivatives - 161,429 161,429 Marketable securities 2,077,499 - 2,077,499 Total liabilities - 36,166 36,166 Financial liabilities at fair value through profit or loss - 36,166 36,166 Derivative financial instruments - 36,166 36,166 |
The financial instruments of the company by category can be summarized as follows: | The financial instruments of the company by category can be summarized as follows: December 31, 2021 Measured at amortized cost Fair value through profit or loss Total Assets, as per balance sheet 9,472,377 5,235,447 14,707,824 Derivative financial instruments - 198,027 198,027 Other derivatives - 457,892 457,892 Trade accounts receivable and other accounts receivable, excluding prepayments 3,253,207 - 3,253,207 Marketable securities - 4,579,528 4,579,528 Cash and cash equivalents 5,228,615 - 5,228,615 Leases 243,121 - 243,121 Judicial deposits 718,773 - 718,773 Other amounts recoverable 28,661 - 28,661 Measured at amortized cost Fair value through profit or loss Total Liabilities, as per balance sheet 16,095,802 208,787 16,304,589 Loans and financing 3,845,465 - 3,845,465 Derivative financial instruments - 208,787 208,787 Suppliers and other obligations, excluding legal obligations 2,653,218 - 2,653,218 Lease liabilities 9,063,539 - 9,063,539 Dividends and interest on shareholders' equity payable 533,580 - 533,580 December 31, 2020 Measured at amortized cost Fair value through profit or loss Total Assets, as per balance sheet 6,756,811 2,579,588 9,336,399 Derivative financial instruments - 340,660 340,660 Other derivatives 161,429 161,429 Trade accounts receivable and other accounts receivable, excluding prepayments 3,180,661 - 3,180,661 Marketable securities - 2,077,499 2,077,499 Cash and cash equivalents 2,575,291 - 2,575,291 Leases 162,198 - 162,198 Judicial deposits 794,755 - 794,755 Other amounts recoverable 43,906 - 43,906 Measured at amortized cost Fair value through profit or loss Total Liabilities, as per balance sheet 14,391,175 36,166 14,427,341 Loans and financing 2,345,032 - 2,345,032 Derivative financial instruments - 36,166 36,166 Suppliers and other obligations, excluding legal obligations 3,128,732 - 3,128,732 Leases 8,378,835 - 8,378,835 Dividends and interest on shareholders' equity payable 538,576 - 538,576 |
The operations with derivative financial instruments contracted by the company and in force on December 31, 2021 and December 31, 2020 are shown in the following table: | The operations with derivative financial instruments contracted by the company and in force on December 31, 2021 and December 31, 2020 are shown in the following table: December 31, 2021 COUNTERPARTY % Coverage AVERAGE SWAP RATES Currency SWAP type Debt SWAP Total Debt Total swap (Long position)¹ Active Tip Short position USD LIBOR x DI KFW/ Finnvera JP Morgan and Bank of America 282,474 282,474 100 LIBOR 6M + 0.75% p.a. 79.00 92.59 USD PRE x DI BNP Paribas BNP Paribas 428,793 429,247 100 3.32% p.a. 155 USD PRE x DI The Bank of Nova Scotia Scotiabank 559,650 559,933 100 1.73% p.a. CDI + 1.05 BRL PRE x DI BNP Paribas BNP Paribas 515,166 517,843 100 8.34% p.a. CDI + 1.07 BRL IPCA x DI DEBENTURE ITAU 1,696,999 1,696,999 100 IPCA + 4.17% p.a. CDI + 0.95 BRL IPCA x DI BNDES XP 396,281 396,281 100 IPCA + 4.23% p.a. 96.95 1 December 31, 2020 COUNTERPARTY % Coverage AVERAGE SWAP RATES Currency SWAP type Debt SWAP Total Debt Total swap (Long position)¹ Active Tip Short position USD LIBOR x DI KFW/ Finnvera JP Morgan and Bank of America 351,233 351,233 100 LIBOR 6M + 0.75% p.a. 85.25 EUR PRE x DI Bank of America Bank of America 570,878 570,878 100 0.33% p.a. 108.05% USD PRE x DI The Bank of Nova Scotia. Scotiabank 1,031,526 1,031,526 100 1.72% p.a. 134.43% USD PRE x DI BNP Paribas BNP Paribas 399,725 399,725 100 3.32% p.a. 155 |
Our assumptions basically observed the individual effect of the CDI, USD, Libor and IPCA variation used in the transactions as the case may be, and for each scenario the following percentages and quotes were used: | Our assumptions basically observed the individual effect of the CDI, USD, Libor and IPCA variation used in the transactions as the case may be, and for each scenario the following percentages and quotes were used: Sensitivity scenario Fair value in USD, EUR, BRL and IPCA (1) A) ∆ Accumulated variation in debt Fair value of the active tip of the swap (+) Fair value of the passive tip of the swap (-) Swap result B) ∆ Accumulated variation in swap C) Final Result (B-A) Dez/21 3,390,406 - 3,390,406 (3,401,372) (10,966) - - CDI probable 3,390,406 - 3,390,406 (3,401,372) (10,966) - - possible 3,388,105 (2,301) 3,388,105 (3,428,742) (40,637) (29,671) (27,370) remote 3,385,955 (4,451) 3,385,955 (3,455,013) (69,058) (58,093) (53,641) USD probable 3,390,406 - 3,390,406 (3,401,372) (10,966) - - possible 3,709,499 319,094 3,709,499 (3,401,372) 308,127 319,094 - remote 4,028,593 638,187 4,028,593 (3,401,372) 627,221 638,187 - LIBOR probable 3,390,406 - 3,390,406 (3,401,372) (10,966) - - possible 3,391,542 1,136 3,391,542 (3,401,372) (9,830) 1,136 - remote 3,392,677 2,271 3,392,677 (3,401,372) (8,695) 2,271 - IPCA probable 3,390,406 - 3,390,406 (3,401,372) (10,966) - - possible 3,277,656 (112,750) 3,277,656 (3,401,372) (123,716) (112,750) - remote 3,173,004 (217,402) 3,173,004 (3,401,372) (228,368) (217,402) - (1) (KFW Finnvera, Scotia, BofA, BNP, Debenture and BNDES) |
Schedule of risk variable of derivative financial instruments | Schedule of risk variable of derivative financial instruments Risk variable Sensitivity scenario CDI USD LIBOR IPCA CDI probable 9.15 5.5805 0.3433 10.06 possible 11.44 5.5805 0.3433 10.06 remote 13.73 5.5805 0.3433 10.06 USD probable 9.15 5.5805 0.3433 10.06 possible 9.15 6.3210 0.3433 10.06 remote 9.15 8.3708 0.3433 10.06 LIBOR probable 9.15 5.5805 0.3433 10.06 possible 9.15 5.5805 0.4291 10.06 remote 9.15 5.5805 0.5149 10.06 IPCA probable 9.15 5.5805 0.3433 10.06 possible 9.15 5.5805 0.3433 12.58 remote 9.15 5.5805 0.3433 15.09 |
Schedule of capital management | The sensitivity analyses for derivative financial instruments in force on December 31, 2021 were carried out considering, basically, the assumptions related to changes in market interest rates and the change in the US dollar used in swap Chart of gains and losses with derivatives during the year Schedule of position showing gains and losses with derivatives 2021 2020 Net income from derivative operations (87,603) 290,856 Income (loss) from operations with other derivatives 285,009 155,165 Capital Management The group's objectives in managing its capital are to safeguard the group's ability to continue to deliver return to shareholders and benefits to other stakeholders, as well as maintain a capital structure to reduce this cost. To maintain or adjust the group's capital structure, management may review the dividend payment policy, return capital to shareholders, or issue new shares or sell assets to reduce, for example, the level of debt. The financial leverage ratios on December 31, 2021 and 2020 can be summarized as follows: Schedule of capital management 2021 2020 Total loans and derivatives (note 20 and 37) 3,398,333 1,879,109 Leases - Liabilities (note 16) 9,063,539 8,378,835 Leases - Assets (note 16) (243,121) (162,198) Less: Cash and cash equivalents (note 4) (5,228,615) (2,575,291) FIC (note 5) (4,568,020) (2,070,438) Net debt 2,422,116 5,450,017 Other derivatives (note 37) 457,892 161,429 Financing of 5G License 843,020 - Adjusted net debt 3,723,028 5,611,447 Adjusted EBITDA (1) (last 12 months) 9,459,299 8,330,038 Leverage ratio 0.39 0.65 Reconciliation of profit for the year to Adjusted EBITDA: Profit for the year 2,957,174 1,828,254 Depreciation and amortization 5,691,696 5,527,012 Finance Income (Cost), Net 652,806 810,622 Income tax and social contribution 146,051 164,150 Share of loss of an associate 11,572 - Adjusted EBITDA (i) 9,459,299 8,330,038 (i) Adjusted EBITDA: Presentation of Adjusted EBITDA as a non-GAAP measure is useful to management, investors and other users of our financial information in evaluating operating profitability of the Company. Adjusted EBITDA is calculated by adding back financial income (expenses), income tax and social contribution, depreciation and amortization cost and expense, and share of loss of an associate to profit for the year. |
Schedule of capital management | The group's objectives in managing its capital are to safeguard the group's ability to continue to deliver return to shareholders and benefits to other stakeholders, as well as maintain a capital structure to reduce this cost. To maintain or adjust the group's capital structure, management may review the dividend payment policy, return capital to shareholders, or issue new shares or sell assets to reduce, for example, the level of debt. The financial leverage ratios on December 31, 2021 and 2020 can be summarized as follows: Schedule of capital management 2021 2020 Total loans and derivatives (note 20 and 37) 3,398,333 1,879,109 Leases - Liabilities (note 16) 9,063,539 8,378,835 Leases - Assets (note 16) (243,121) (162,198) Less: Cash and cash equivalents (note 4) (5,228,615) (2,575,291) FIC (note 5) (4,568,020) (2,070,438) Net debt 2,422,116 5,450,017 Other derivatives (note 37) 457,892 161,429 Financing of 5G License 843,020 - Adjusted net debt 3,723,028 5,611,447 Adjusted EBITDA (1) (last 12 months) 9,459,299 8,330,038 Leverage ratio 0.39 0.65 Reconciliation of profit for the year to Adjusted EBITDA: Profit for the year 2,957,174 1,828,254 Depreciation and amortization 5,691,696 5,527,012 Finance Income (Cost), Net 652,806 810,622 Income tax and social contribution 146,051 164,150 Share of loss of an associate 11,572 - Adjusted EBITDA (i) 9,459,299 8,330,038 (i) Adjusted EBITDA: Presentation of Adjusted EBITDA as a non-GAAP measure is useful to management, investors and other users of our financial information in evaluating operating profitability of the Company. Adjusted EBITDA is calculated by adding back financial income (expenses), income tax and social contribution, depreciation and amortization cost and expense, and share of loss of an associate to profit for the year. |
Changes in financial liabilities | Changes in financial liabilities Changes in liabilities arising from financing activities such as loans and financing, lease liabilities lease and financial instruments are presented below: Loans and financing Lease liabilities Derivative financial instruments (assets) liabilities December 31, 2020 2,345,032 8,378,835 (465,922) Inflows 3,062,000 2,041,474 (296,464) Cancellations - (202,379) - Financial expenses 167,857 858,260 148,177 Foreign exchange variations, net 60,463 - (60,574) Payment (1,789,887) (2,012,651) 227,651 - December 31, 2021 3,845,465 9,063,539 (447,132) Loans and financing Lease liabilities Derivative financial instruments (Assets) Liabilities December 31, 2019 2,029,088 7,780,870 (42,106) Inflows 1,800,000 1,966,355 (161,429) Remeasurement - (443,666) - Financial expenses 90,500 797,569 13,016 Foreign exchange variations, net 305,010 - (305,012) Payment (1,879,566) (1,722,293) 29,610 December 31, 2020 2,345,032 8,378,835 (465,922) |
Defined benefit pension plans_2
Defined benefit pension plans and other post-employment benefits (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Schedule of asset policy and medical plan | Schedule of asset policy and medical plan 2021 2020 PAMEC/asset policy and medical plan 6,492 7,346 |
The actuarial position of liabilities and assets related to retirement and health care plans, on December 31, 2020, in accordance with the rules provided for by IAS 19 is presented below. | The actuarial position of liabilities and assets related to retirement and health care plans, on December 31, 2020, in accordance with the rules provided for by IAS 19 is presented below. a) Effects on the base date of December 31: Plans Total PBS PBS Assisted Administration agreement PAMEC/ Asset Policy AES Telecom Medical plan 2021 2020 Reconciliation of assets and liabilities on 12/31/2021 (*) (*) Present value of the actuarial obligations 38,869 9,176 119 672 14,100 3,231 66,167 69,362 Fair value of the plan assets (56,478) (14,739) (405) - (11,511) - (83,133) (80,856) Present value of the obligations exceeding the fair value of the assets (17,609) (5,563) (286) 672 2,589 3,231 (16,966) (11,494) Amount recognized in other comprehensive income - 2,327 168 - - - 2,495 2,023 Net actuarial liabilities/(assets) (17,609) (3,236) (118) 672 2,589 3,231 (14,471) (9,471) (*) No asset was recognized by the sponsors, due to the impossibility of reimbursing this surplus, and the fact that the sponsor’s contributions will not be reduced in the future. |
b) Changes in net actuarial liabilities (assets) | b) Changes in net actuarial liabilities (assets) Plans PBS PBS Assisted Administration agreement PAMEC/ Asset Policy AES Telecom Medical plan Actuarial liabilities (assets) on 12/31/2020 (15,731) (1,360) (287) 858 2,145 4,343 Expense (revenue) recognized in income (loss) (1,063) (90) (20) 57 160 535 Contributions of the sponsor - - - (45) - (8) Recognized actuarial (gains) or losses (815) (1,786) 189 (198) 284 (1,639) Unrecognized actuarial (gains) or losses - - - - - - Net actuarial liabilities (assets) on 12/31/2021 (17,609) (3,236) (118) 672 2,589 3,231 |
c) Reconciliation of present value of obligations | c) Reconciliation of present value of obligations Plans PBS PBS Assisted Administration agreement PAMEC/ Asset Policy AES Telecom Medical plan Value of obligations on 12/31/2020 41,852 10,072 147 858 12,090 4,343 Cost of current service 17 - - - - 213 Interest on actuarial obligation 2,743 640 10 57 868 322 Benefits paid in the year (2,898) (768) (9) (45) (605) (8) Contributions paid by participants - 0 (Gains)/losses in obligations (2,845) (768) (29) (198) 1,747 (1,639) Value of obligations on 12/31/2021 38,869 9,176 119 672 14,100 3,231 |
d) Reconciliation of the fair value of the assets | d) Reconciliation of the fair value of the assets Plans PBS PBS Assisted Administration agreement PAMEC/ Asset Policy AES Telecom Medical plan Fair value of assets on 12/31/2020 57,479 12,998 434 - 9,945 - Benefits paid in the year (2,898) (768) (9) - (605) - Actual earnings from assets during the year 3,799 834 29 - 708 - Actuarial gain (loss) on plan assets (1,902) 1,675 (49) - 1,463 - Contributions paid by participants - - - - - - Contributions of sponsor converted in the plan - - - - - Fair value of assets on 12/31/2021 56,478 14,739 405 - 11,511 - |
e) Expenses planned for 2022 | e) Expenses planned for 2022 Plans PBS PBS Assisted Administration agreement PAMEC/ Asset Policy AES Telecom Medical plan Current service cost (with interest) 4 - - - - 121 Interest on actuarial obligations 3,289 769 10 57 1,242 290 Earnings expected from assets (4,841) (1,257) (35) - (1,008) - Interest on the effect of the (asset)/liability limit 1,552 284 10 - - - Total unrecognized net expense (revenue) 4 (204) (15) 57 234 411 |
The main actuarial assumptions adopted in the calculation were as follows: | The main actuarial assumptions adopted in the calculation were as follows: Nominal discount rate for the actuarial obligation: PBS South: 8.81% / 5.13%; PBS Nordeste: 8.84% / 5.16%; CA: 8.81% / 5.13%; PBS-A: 8.78% / 5.10%; AES: 9.02% / 5.33%; PAMEC: 8.81% / 5.13%; FIBER: 9.02% / 5.33% Salary growth rate - nominal: PBS: 3.50%/ 0.00% CA, PBS-A, AES, PAMEC and FIBER: Not applicable Biometric general mortality table: PBS, CA, PAMEC and FIBER: AT-2000 segregated per sex, decreased by 10% Biometric table of new disability benefit vested: PBS and FIBER: Álvaro Vindas; CA, PBS-A, AES and PAMEC: Not applicable Expected turnover rate: PBS: Null; CA, PBS-A, AES and PAMEC: Not applicable; FIBER: 0.15/ (length of service + 1), being null as of 50 years old Probability of retirement: PBS and FIBER: 100% at 1st eligibility; CA, PBS-A, AES and PAMEC: Not applicable Estimated long-term inflation rate PAMEC and FIBER: 6.60% / 3.00% Determination method Projected Unit Credit Method |
Insurances (Tables)
Insurances (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
The main assets, liabilities or interests covered by insurance and their maximum indemnity limits are as follows: | The Company maintains a policy of monitoring the risks inherent in its operations. As a result, on December 31, 2021, the company had insurance contracts in force to cover operational risks, civil liability, cyber risks, health, among others. The management of the company understands that the policies represent sufficient amounts to cover any losses. The main assets, liabilities or interests covered by insurance and their maximum indemnity limits are as follows: Modalities Maximum indemnity limits Operational Risks R$ 550,000 General Civil Liability - RCG R$ 80,000 Cyber risks R$ 30,001 Automobile (executive and operational fleet) R$ 1,000 for optional civil liability (property damage and bodily harm) and R$ 100 for pain and suffering. |
Supplementary information to _2
Supplementary information to the cash flow (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Schedule of supplementary information to the cash flow | Schedule of supplementary information to the cash flow 2021 2020 2019 Non-cash transactions Additions to property, plant and equipment and intangible assets - with no effect on cash (1,929,392) (1,315,151) (6,653,985) Additions to intangible assets - acquisition of licenses 2,682,469 - - |
The effects of the transaction
The effects of the transaction are detailed below: (Details) R$ in Thousands | 12 Months Ended |
Dec. 31, 2021BRL (R$) | |
Operations | |
Transaction price | R$ 1096294 |
Investment registration at fair value | 1,612,957 |
Write-off of investment | (1,211,472) |
[custom:WriteoffOfGoodwillAtFiberrjfiberspAcquisition] | (1,051,477) |
Write-off of deferred tax on goodwill amortized | 335,935 |
Gain on transaction | 782,237 |
Income tax and social contribution | (509,245) |
Net gain on transaction | 272,992 |
xxx_Gain before income tax and social contribution on remeasurement of investment to fair value | 668,720 |
Gain before income tax and social contribution on asset disposal | R$ 113517 |
Operations (Details Narrative)
Operations (Details Narrative) - BRL (R$) | Nov. 30, 2021 | Nov. 16, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Nov. 02, 2021 | May 05, 2021 |
IfrsStatementLineItems [Line Items] | ||||||
Total for the acquisition of a equity interest | R$ 1678792000 | |||||
I H S [Member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Percentage of voting equity interests control of the new company | 51.00% | 51.00% | 51.00% | |||
T I M S A [Member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Percentage of voting equity interests control of the new company | 49.00% | 49.00% | 49.00% | |||
Investment in an associated company | R$ 1612957 | |||||
[custom:PercentageOfGoodwillWrittenOff] | 90.00% | |||||
Goodwill recorded in the acquisition | R$ 1051477000 | |||||
T I M S A [Member] | Tranche One [Member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Total for the acquisition of a equity interest | R$ 582498000 | |||||
T I M S A [Member] | Tranche Two [Member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Total for the acquisition of a equity interest | R$ 1096294000 | |||||
I Systems [Member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Percentage of voting equity interests control of the new company | 51.00% | |||||
Valuation report of the net assets and liabilities | R$ 1211789000 | |||||
Fair value of new company | R$ 3291749000 | |||||
T I M Brasil Servicos E Participacoes S A [Member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Proportion of ownership interest in subsidiary | 66.59% | 66.58% |
The impact of the reverse merge
The impact of the reverse merger of TIM Participa??es by TIM S.A. was limited to reclassifications among certain accounts within the current year statement of changes in shareholders’ equity as follows: (Details) R$ in Thousands | Dec. 31, 2021BRL (R$) |
IfrsStatementLineItems [Line Items] | |
The Company's equity reserves | R$ 23182745 |
T I M Participacoes [Member] | |
IfrsStatementLineItems [Line Items] | |
The Company's equity reserves | 23,182,745 |
Issued capital [member] | |
IfrsStatementLineItems [Line Items] | |
The Company's equity reserves | 13,477,891 |
Impact on TIM S.A. statement of changes in equity | 3,611,593 |
Issued capital [member] | T I M Participacoes [Member] | |
IfrsStatementLineItems [Line Items] | |
The Company's equity reserves | 9,866,298 |
Capital reserve [member] | |
IfrsStatementLineItems [Line Items] | |
The Company's equity reserves | 397,183 |
Impact on TIM S.A. statement of changes in equity | (20,892) |
Capital reserve [member] | T I M Participacoes [Member] | |
IfrsStatementLineItems [Line Items] | |
The Company's equity reserves | 418,075 |
Other reserves [member] | |
IfrsStatementLineItems [Line Items] | |
The Company's equity reserves | 1,036,194 |
Impact on TIM S.A. statement of changes in equity | (57,603) |
Other reserves [member] | T I M Participacoes [Member] | |
IfrsStatementLineItems [Line Items] | |
The Company's equity reserves | 1,093,797 |
Tax Bbenefit Reserve [Member] | |
IfrsStatementLineItems [Line Items] | |
The Company's equity reserves | 1,781,560 |
Impact on TIM S.A. statement of changes in equity | |
Tax Bbenefit Reserve [Member] | T I M Participacoes [Member] | |
IfrsStatementLineItems [Line Items] | |
The Company's equity reserves | 1,781,560 |
Reserve For Expansion [Member] | |
IfrsStatementLineItems [Line Items] | |
The Company's equity reserves | 6,499,602 |
Impact on TIM S.A. statement of changes in equity | (3,535,824) |
Reserve For Expansion [Member] | T I M Participacoes [Member] | |
IfrsStatementLineItems [Line Items] | |
The Company's equity reserves | 10,035,426 |
Treasury shares [member] | |
IfrsStatementLineItems [Line Items] | |
The Company's equity reserves | (4,837) |
Impact on TIM S.A. statement of changes in equity | 5,456 |
Treasury shares [member] | T I M Participacoes [Member] | |
IfrsStatementLineItems [Line Items] | |
The Company's equity reserves | (10,293) |
Amount recognised in other comprehensive income and accumulated in equity relating to non-current assets or disposal groups held for sale [member] | |
IfrsStatementLineItems [Line Items] | |
The Company's equity reserves | (4,848) |
Impact on TIM S.A. statement of changes in equity | (2,730) |
Amount recognised in other comprehensive income and accumulated in equity relating to non-current assets or disposal groups held for sale [member] | T I M Participacoes [Member] | |
IfrsStatementLineItems [Line Items] | |
The Company's equity reserves | R$ 2118 |
Management statement and basi_3
Management statement and basis of preparation of the financial statements (Details Narrative) | Dec. 31, 2020shares |
Management Statement And Basis Of Preparation Of Financial Statements | |
Issuance of common shares | 2,420,447,019 |
Schedule of financial assets (D
Schedule of financial assets (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Cash and banks | R$ 99821 | R$ 100009 |
Unrestrictedly available financial investments investments: | ||
Bank Deposit Certificates (CDB)/Repurchase and resale agreements | 5,128,794 | 2,475,282 |
Total cash and cash equivalents | R$ 5228615 | R$ 2575291 |
Cash and cash equivalents (Deta
Cash and cash equivalents (Details Narrative) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Return rate on cash and cash equivalent | 101.57% | 101.24% |
Schedule of marketable securiti
Schedule of marketable securities (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
IfrsStatementLineItems [Line Items] | ||
Marketable securities | R$ 4579528 | R$ 2077499 |
Current portion | (4,568,020) | (2,070,438) |
Non-current portion | 11,508 | 7,061 |
F U N C I N E [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Marketable securities | R$ 11508 | R$ 7061 |
[custom:AverageYieldRate] | 0.06% | 3.34% |
Sovereign Fund [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Marketable securities | R$ 9624 | R$ 5220 |
F I C Government Bonds [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Marketable securities | 2,975,613 | 1,345,797 |
F I C C D B [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Marketable securities | 40,496 | 17,370 |
Financial Bill [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Marketable securities | 703,118 | 292,500 |
Other [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Marketable securities | R$ 839169 | R$ 409551 |
Fundo Soberano [Member] | ||
IfrsStatementLineItems [Line Items] | ||
[custom:AverageYieldRate] | 95.13% | 87.71% |
F I Cs [Member] | ||
IfrsStatementLineItems [Line Items] | ||
[custom:AverageYieldRate] | 122.76% | 112.72% |
Schedule of trade account recei
Schedule of trade account receivables (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
IfrsStatementLineItems [Line Items] | ||
Trade accounts receivable | R$ 3253207 | R$ 3180661 |
Gross accounts receivable | 4,000,026 | 3,831,921 |
Provision for expected credit losses | (746,819) | (651,260) |
Current portion | (3,066,906) | (3,051,834) |
Non-current portion | 186,301 | 128,827 |
Billed Services [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Gross accounts receivable | 2,107,682 | 2,039,403 |
Unbilled Services [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Gross accounts receivable | 849,762 | 817,669 |
Network Use [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Gross accounts receivable | 504,333 | 399,083 |
Sale Of Goods [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Gross accounts receivable | 521,362 | 552,962 |
Contractual Asset [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Gross accounts receivable | 15,340 | 14,914 |
Other Accounts Receivable [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Gross accounts receivable | R$ 1547 | R$ 7890 |
Schedule of changes in the allo
Schedule of changes in the allowance for doubtful accounts (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Opening balance | R$ 651260 | R$ 774077 |
Supplement to expected losses | 544,642 | 552,817 |
Write-off of provision | (449,083) | (675,634) |
Closing Balance | R$ 746819 | R$ 651260 |
Schedule of aging of accounts r
Schedule of aging of accounts receivable (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
IfrsStatementLineItems [Line Items] | ||
Trade account receivables gross | R$ 4000026 | R$ 3831921 |
Current [member] | ||
IfrsStatementLineItems [Line Items] | ||
Trade account receivables gross | 2,895,999 | 2,785,469 |
Not later than one month [member] | ||
IfrsStatementLineItems [Line Items] | ||
Trade account receivables gross | 246,195 | 248,955 |
Later than one month and not later than two months [member] | ||
IfrsStatementLineItems [Line Items] | ||
Trade account receivables gross | 100,027 | 84,218 |
Later than two months and not later than three months [member] | ||
IfrsStatementLineItems [Line Items] | ||
Trade account receivables gross | 77,280 | 71,635 |
Later than three months [member] | ||
IfrsStatementLineItems [Line Items] | ||
Trade account receivables gross | R$ 680525 | R$ 641644 |
Schedule of inventory (Details)
Schedule of inventory (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
IfrsStatementLineItems [Line Items] | ||
Total inventories | R$ 202553 | R$ 246602 |
Inventories gross | 214,605 | 257,477 |
Losses on adjustment to realizable amount | (12,052) | (10,875) |
Cell Phones And Tablets [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Inventories gross | 140,934 | 186,961 |
Accessories And Prepaid Cards [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Inventories gross | 53,791 | 55,558 |
T I M Chips [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Inventories gross | R$ 19880 | R$ 14958 |
Trade accounts receivable (Deta
Trade accounts receivable (Details Narrative) | Dec. 31, 2021 | Dec. 31, 2020 |
Other Telephone Carriers [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Average rate | 19.00% | 22.00% |
Schedule of recoverable indirec
Schedule of recoverable indirect taxes, fees and contributions (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Reserve Quantities [Line Items] | ||
Recoverable indirect taxes, fees and contributions | R$ 1259932 | R$ 1230801 |
Current portion | (354,620) | (374,015) |
Non-current portion | 905,312 | 856,786 |
Imposto Sobre Circulacao De Mercadorias Servicos [Member] | Indirect [Member] | ||
Reserve Quantities [Line Items] | ||
Recoverable indirect taxes, fees and contributions | 1,216,912 | 1,188,018 |
Other Indirect Taxes [Member] | Indirect [Member] | ||
Reserve Quantities [Line Items] | ||
Recoverable indirect taxes, fees and contributions | R$ 43020 | R$ 42783 |
Schedule of direct taxes, fees
Schedule of direct taxes, fees and contributions recoverable (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
IfrsStatementLineItems [Line Items] | ||
Direct taxes, fees and contributions recoverable | R$ 2042361 | R$ 2698239 |
Current portion | (1,311,906) | (1,421,112) |
Non-current portion | 730,455 | 1,277,127 |
T I M S A [Member] | ||
IfrsStatementLineItems [Line Items] | ||
[custom:MonetaryAdjustments] | 547,000 | |
Income Tax And Social Contribution On Income [Member] | Direct [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Direct taxes, fees and contributions recoverable | 807,096 | 381,905 |
P I S And C O F I N S [Member] | Direct [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Direct taxes, fees and contributions recoverable | 1,164,772 | 2,253,545 |
Other Direct Taxes [Member] | Direct [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Direct taxes, fees and contributions recoverable | R$ 70493 | R$ 62789 |
Recoverable direct taxes, cha_3
Recoverable direct taxes, charges and contributions (Details Narrative) R$ in Millions | 12 Months Ended |
Dec. 31, 2021BRL (R$) | |
IfrsStatementLineItems [Line Items] | |
Total amount recorded | R$ 1516 |
Principal amount | 957 |
Intelig Telecomunicacoes Ltda [Member] | |
IfrsStatementLineItems [Line Items] | |
Total amount recorded | 3,023 |
Principal amount | 1,795 |
[custom:MonetaryAdjustments] | R$ 1228 |
Schedule of deferred taxes asse
Schedule of deferred taxes assets and liabilities (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | |
Deferred Income Tax And Social Contribution | |||
Tax loss and negative basis of social contribution | R$ 219876 | R$ 475128 | |
Temporary differences: | |||
Provision for legal and administrative proceedings | 330,627 | 303,948 | |
Losses on doubtful accounts receivable | 257,529 | 224,459 | |
Adjustments to present value – 3G license | 3,298 | 5,240 | |
Lease of LT Amazonas infrastructure | 32,377 | 29,971 | |
Employee profit sharing | 40,177 | 36,915 | |
Taxes with enforceability suspended | [1] | 437,950 | 258,246 |
Amortized Goodwill – TIM Fiber | [2] | (34,560) | (370,494) |
Derivative financial instruments | (143,948) | (154,718) | |
Capitalized interest on 4G authorization | (233,433) | (262,608) | |
Deemed costs – TIM S.A | (42,617) | (53,792) | |
Adjustments to lease agreements | 369,521 | 303,833 | |
Accelerated depreciation | [3] | (466,863) | (266,464) |
Fair value adjustment I–Systems (former FiberCo) | [4] | (249,477) | |
Other | 16,431 | 20,982 | |
Total deferred taxes - Assets | 536,888 | 550,646 | |
Deferred active tax portion | R$ 536888 | R$ 550646 | |
[1] | Mainly represented by the Fistel fee for the financial years 2020 and 2021. The Operating Inspection Fee (TFF) for the years 2020 and 2021 had its payments suspended by virtue of an injunction and, therefore, still do not have a specific date for payment. See note 21 for details. | ||
[2] | Represented by the goodwill on the business combination of companies TIM Fiber RJ and SP acquired by TIM in 2012, partially realized in November 2021 once this transaction is completed. | ||
[3] | As of the 1Q20, TIM S.A. excludes the portion of acceleration of depreciation of movable assets belonging to property, plant and equipment from the calculation basis of the IRPJ and CSLL, due to their uninterrupted use in three operating shifts, supported by technical expert report, as provided for in Article 323 of the RIR/2018, or by the adequacy to the tax depreciation provided for in IN 1700/2017. Such tax adjustment generated a deferred liability of R$ 467 million until December 31, 2021 (R$ 266.5 million up to December 31, 2020) and applied as of January 1, 2020. | ||
[4] | Refers to deferred charges on the fair value of the non-majority interest calculated in the sale transaction described in Note 1 that took place in November 2021 between TIM S.A. and IHS Fiber Brasil - Cessão de Infraestruturas Ltda. |
Schedule of expectations to rec
Schedule of expectations to recover the credits (Details) - Unused tax losses [member] R$ in Thousands | Dec. 31, 2021BRL (R$) |
IfrsStatementLineItems [Line Items] | |
2022 | R$ 103847 |
2023 | 79,581 |
2024 | 36,448 |
2025 | |
Total | R$ 219876 |
Deferred income tax and socia_3
Deferred income tax and social contribution (Details Narrative) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Deferred Income Tax And Social Contribution | ||
Applicable tax rate for income tax | 25.00% | 25.00% |
Applicable tax rate for social contribution | 9.00% | 9.00% |
Percentage of taxable profit offset | 30.00% | |
Credit used amount | R$ 255252 | R$ 325583 |
Schedule of prepaid expenses (D
Schedule of prepaid expenses (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | ||
IfrsStatementLineItems [Line Items] | |||
Total | R$ 358287 | R$ 223394 | |
Advertisements not released | [1] | 86,154 | 1,679 |
Rentals and insurance | 67,034 | 69,208 | |
Incremental costs for obtaining contracts with customers | [2] | 153,988 | 125,114 |
IT Services | [3] | 28,626 | 10,535 |
Other | 22,485 | 16,858 | |
Current portion | (275,148) | (149,796) | |
Non-current portion | R$ 83139 | R$ 73598 | |
Increase (decrease) due to changes in accounting policy required by IFRSs [member] | Bottom of range [member] | |||
IfrsStatementLineItems [Line Items] | |||
Useful life measured as period of time, intangible assets other than goodwill | 1 year | ||
Increase (decrease) due to changes in accounting policy required by IFRSs [member] | Top of range [member] | |||
IfrsStatementLineItems [Line Items] | |||
Useful life measured as period of time, intangible assets other than goodwill | 2 years | ||
[1] | Represent prepaid payments of advertising expenses for products and services of the TIM brand that are recognized in the result according to the period of serving the advertisement. | ||
[2] | |||
[3] | They represent prepayments of IT services expenses for network migration of information to the “cloud.” |
Schedule of detailed informatio
Schedule of detailed information about judicial deposits (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
IfrsStatementLineItems [Line Items] | ||
Non-current portion | R$ 718773 | R$ 794755 |
Civil [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Non-current portion | 285,583 | 315,312 |
Labor [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Non-current portion | 128,607 | 149,390 |
Tax [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Non-current portion | 178,914 | 181,670 |
Regulatory [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Non-current portion | 111 | 111 |
Online Attachment [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Non-current portion | R$ 125558 | R$ 148272 |
Judicial deposits (Details Narr
Judicial deposits (Details Narrative) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Civil [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Court deposit | R$ 72533 | R$ 70560 |
Tax [Member] | Tax Issues To Current Court Proceedings One [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Court deposit | 34,544 | 34,544 |
Tax [Member] | Tax Issues To Current Court Proceedings Two [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Court deposit | 9,073 | 8,862 |
Tax [Member] | Tax Issues To Current Court Proceedings Three [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Court deposit | 20,022 | 18,883 |
Tax [Member] | Tax Issues To Current Court Proceedings Four [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Court deposit | 11,254 | 11,317 |
Tax [Member] | Tax Issues To Current Court Proceedings Five [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Court deposit | 8,048 | 7,843 |
Tax [Member] | Tax Issues To Current Court Proceedings Six [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Court deposit | 3,478 | 3,329 |
Tax [Member] | Tax Issues To Current Court Proceedings Fourteen [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Court deposit | 3,582 | 3,514 |
Tax [Member] | Tax Issues To Current Court Proceedings Eight [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Court deposit | 61,752 | 58,664 |
Tax [Member] | Tax Issues To Current Court Proceedings Night [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Court deposit | 9,960 | 14,505 |
Tax [Member] | Tax Issues To Current Court Proceedings Ten [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Court deposit | R$ 9730 | R$ 9739 |
As of December 31, 2020, TIM S.
As of December 31, 2020, TIM S.A. held 100% control over FiberCo (currently I-Systems). (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reserve Quantities [Line Items] | |||
Net loss | R$ 2957174 | R$ 1828254 | R$ 3622127 |
Equity in earning | R$ 11236551 | R$ 9317356 | |
Fiber Co [Member] | |||
Reserve Quantities [Line Items] | |||
Number of share held | 1,000 | 1,000 | |
Interest in total capital | 100.00% | 100.00% | |
Subsidary sareholders' equity | R$ 318 | R$ 1 | |
Net loss | (318) | ||
Equity in earning | (318) | ||
Amount of investment | R$ 1 |
Changes in investments in subsi
Changes in investments in subsidiaries: (Details) - Subsidiaries [member] R$ in Thousands | 12 Months Ended |
Dec. 31, 2021BRL (R$) | |
IfrsStatementLineItems [Line Items] | |
Balance of investment at December 31, 2020 | R$ 1 |
Share of loss until October 2021 | (318) |
Capital increase | 1,211,789 |
Write-off of investment | (1,211,472) |
Balance of investment at November 16, 2021 |
On December 31, 2021, the Compa
On December 31, 2021, the Company does not have subsidiaries in its corporate structure. In November 2021, TIM S.A. started having I-Systems as an affiliated company and to record the income (loss) of this company under the equity method, no longer consol (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
IfrsStatementLineItems [Line Items] | |||
Profit for the year | R$ 2957174 | R$ 1828254 | R$ 3622127 |
Retained earnings | R$ 11236551 | R$ 9317356 | |
T I M S A [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Number of shares in entity held by entity or by its subsidiaries or associates | 1,794,287,995 | ||
[custom:InterestInTotalCapital] | 49.00% | ||
Issue of equity | R$ 1794288 | ||
Profit for the year | (22,968) | ||
Retained earnings | (11,254) | ||
Current held-to-maturity investments | R$ 1601703 |
Change of investment in associa
Change of investment in associate: (Details) - Associates [member] R$ in Thousands | 12 Months Ended |
Dec. 31, 2021BRL (R$) | |
IfrsStatementLineItems [Line Items] | |
Balance of investment at December 31, 2020 | |
Revaluation of minority interest at fair value | 1,612,957 |
Share of loss - November 2021 and December 2021 | (11,254) |
Balance of investment at December 31, 2021 | R$ 1601703 |
Investment (Details Narrative)
Investment (Details Narrative) - BRL (R$) R$ in Thousands | 1 Months Ended | |||
Nov. 30, 2021 | Nov. 30, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
T I M S A [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Percentage of interest | 49.00% | 100.00% | ||
Associates [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Fair value for the remaining minority interest | R$ 1601703 | |||
Associates [member] | Fiber Co [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Fair value for the remaining minority interest | R$ 1612957 | R$ 1601703 | ||
Percentage of interest | 49.00% |
Schedule of changes in property
Schedule of changes in property, plant and equipment (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||||
IfrsStatementLineItems [Line Items] | |||||||
Balance end | R$ 18308400 | R$ 18100698 | R$ 17612164 | ||||
Additions | 1,620,602 | 919,529 | |||||
Write-offs | (1,412,900) | [1] | (430,995) | [2] | |||
[custom:RemeasurementOfContract] | 415,060 | ||||||
Lease Network 1 [Member] | |||||||
IfrsStatementLineItems [Line Items] | |||||||
Balance end | 3,048,509 | 3,019,900 | |||||
Additions in the period, net of cancellation | 630,805 | ||||||
Remensuration | (83,606) | ||||||
Depreciation | R$ 518590 | ||||||
Amortization percentage per year | 7860.00% | ||||||
Lease Stores And Kiosks 1 [Member] | |||||||
IfrsStatementLineItems [Line Items] | |||||||
Balance end | R$ 541312 | 400,262 | |||||
Additions in the period, net of cancellation | 295,874 | ||||||
Remensuration | (45,312) | ||||||
Depreciation | R$ 109512 | ||||||
Amortization percentage per year | 9700.00% | ||||||
Lease Land Network 1 [Member] | |||||||
IfrsStatementLineItems [Line Items] | |||||||
Balance end | R$ 1504233 | 1,500,909 | |||||
Additions in the period, net of cancellation | 237,150 | ||||||
Remensuration | (23,772) | ||||||
Depreciation | R$ 210054 | ||||||
Amortization percentage per year | 9470.00% | ||||||
Lease Fiber [Member] | |||||||
IfrsStatementLineItems [Line Items] | |||||||
Balance end | R$ 1400999 | 1,404,438 | |||||
Additions in the period, net of cancellation | 427,478 | ||||||
Remensuration | (27,185) | ||||||
Depreciation | R$ 403732 | ||||||
Amortization percentage per year | 3240.00% | ||||||
Right Of Use In Lease 1 [Member] | |||||||
IfrsStatementLineItems [Line Items] | |||||||
Balance end | R$ 6495053 | 6,325,509 | |||||
Additions in the period, net of cancellation | 1,591,307 | ||||||
Remensuration | (179,875) | ||||||
Depreciation | (1,241,888) | ||||||
Switching Transmission Equipment [Member] | |||||||
IfrsStatementLineItems [Line Items] | |||||||
Balance end | 7,666,460 | 7,745,390 | 6,428,468 | ||||
Additions | (1,956,684) | (1,896,016) | |||||
Write-offs | (994,390) | [1] | (9,082) | [2] | |||
Transfers | 2,872,144 | 3,222,020 | |||||
Fiber Optic Cables [Member] | |||||||
IfrsStatementLineItems [Line Items] | |||||||
Balance end | 403,022 | ||||||
Additions | (72,046) | ||||||
Transfers | 64,511 | ||||||
Fiber Optic Cables 1 [Member] | |||||||
IfrsStatementLineItems [Line Items] | |||||||
Balance end | 256,307 | 395,487 | |||||
Additions | (65,669) | ||||||
Transfers | 25,778 | ||||||
Free Leased Handsets [Member] | |||||||
IfrsStatementLineItems [Line Items] | |||||||
Balance end | 233,132 | ||||||
Additions | (142,397) | ||||||
Write-offs | [2] | (5,185) | |||||
Transfers | 159,569 | ||||||
Network infrastructure [member] | |||||||
IfrsStatementLineItems [Line Items] | |||||||
Balance end | 2,503,014 | ||||||
Additions | (408,540) | (340,315) | |||||
Write-offs | [2] | (535) | |||||
Transfers | 518,348 | 255,554 | |||||
Informatics Assets [Member] | |||||||
IfrsStatementLineItems [Line Items] | |||||||
Balance end | 126,610 | 152,416 | 155,942 | ||||
Additions | (58,209) | (62,648) | |||||
Write-offs | (46,584) | [1] | (8) | [2] | |||
Transfers | 32,538 | ||||||
General Use Assets [Member] | |||||||
IfrsStatementLineItems [Line Items] | |||||||
Balance end | 267,616 | 264,384 | 268,847 | ||||
Additions | (48,204) | (48,402) | |||||
Write-offs | (6,523) | [1] | (386) | [2] | |||
Transfers | 57,959 | 44,325 | |||||
Right-of-use assets [member] | |||||||
IfrsStatementLineItems [Line Items] | |||||||
Balance end | 6,495,053 | 6,325,509 | |||||
Write-offs | [1] | (179,875) | |||||
Land [member] | |||||||
IfrsStatementLineItems [Line Items] | |||||||
Balance end | 40,794 | 40,794 | R$ 40794 | ||||
Construction in progress [member] | |||||||
IfrsStatementLineItems [Line Items] | |||||||
Balance end | 783,667 | 513,881 | 1,585,673 | ||||
Additions | 3,953,345 | 2,734,056 | |||||
Write-offs | [1] | (984) | |||||
Transfers | (3,682,575) | (3,805,109) | |||||
Right Of Use In Leases [Member] | |||||||
IfrsStatementLineItems [Line Items] | |||||||
Balance end | 5,993,272 | ||||||
Additions | 349,419 | 747,297 | |||||
Write-offs | [2] | (415,060) | |||||
Fiber Optic Cables 2 [Member] | |||||||
IfrsStatementLineItems [Line Items] | |||||||
Write-offs | [1] | (99,289) | |||||
Free Leased Handsets 1 [Member] | |||||||
IfrsStatementLineItems [Line Items] | |||||||
Balance end | 271,763 | 245,119 | |||||
Additions | (144,856) | ||||||
Write-offs | [1] | (4,308) | |||||
Transfers | 175,808 | ||||||
Network Infrastructure 1 [Member] | |||||||
IfrsStatementLineItems [Line Items] | |||||||
Balance end | 2,417,718 | ||||||
Write-offs | [1] | (127,396) | |||||
Network Infrastructure 4 [Member] | |||||||
IfrsStatementLineItems [Line Items] | |||||||
Balance end | 2,400,130 | ||||||
Gross carrying amount [member] | |||||||
IfrsStatementLineItems [Line Items] | |||||||
Balance end | 49,159,678 | 47,429,167 | 43,358,751 | ||||
Additions | 5,572,362 | 4,687,207 | |||||
Write-offs | (3,841,851) | [1] | (616,791) | [2] | |||
Gross carrying amount [member] | Switching Transmission Equipment [Member] | |||||||
IfrsStatementLineItems [Line Items] | |||||||
Balance end | 25,854,454 | 25,875,916 | 22,817,681 | ||||
Additions | 26,905 | 10,464 | |||||
Write-offs | (2,920,511) | (174,249) | [2] | ||||
Transfers | 2,872,144 | 3,222,020 | |||||
Gross carrying amount [member] | Fiber Optic Cables [Member] | |||||||
IfrsStatementLineItems [Line Items] | |||||||
Balance end | 778,512 | 878,100 | 813,589 | ||||
Transfers | 25,778 | 64,511 | |||||
Gross carrying amount [member] | Fiber Optic Cables 1 [Member] | |||||||
IfrsStatementLineItems [Line Items] | |||||||
Write-offs | [1] | (125,366) | |||||
Gross carrying amount [member] | Free Leased Handsets [Member] | |||||||
IfrsStatementLineItems [Line Items] | |||||||
Balance end | 2,806,454 | 2,643,336 | 2,489,995 | ||||
Additions | 805 | 912 | |||||
Write-offs | (13,495) | [1] | (7,140) | [2] | |||
Transfers | 175,808 | 159,569 | |||||
Gross carrying amount [member] | Network infrastructure [member] | |||||||
IfrsStatementLineItems [Line Items] | |||||||
Balance end | 6,443,285 | 6,436,572 | 6,096,847 | ||||
Additions | 92,234 | ||||||
Write-offs | [2] | (8,063) | |||||
Transfers | 518,348 | 255,554 | |||||
Gross carrying amount [member] | Network Infrastructure 2 [Member] | |||||||
IfrsStatementLineItems [Line Items] | |||||||
Write-offs | [1] | (511,635) | |||||
Gross carrying amount [member] | Informatics Assets [Member] | |||||||
IfrsStatementLineItems [Line Items] | |||||||
Balance end | 1,756,340 | 1,770,386 | 1,721,251 | ||||
Additions | 1 | ||||||
Write-offs | (46,584) | [1] | (9,996) | [2] | |||
Transfers | 32,538 | 59,130 | |||||
Gross carrying amount [member] | General Use Assets [Member] | |||||||
IfrsStatementLineItems [Line Items] | |||||||
Balance end | 916,845 | 902,287 | 859,505 | ||||
Additions | 1 | ||||||
Write-offs | (43,401) | [1] | (1,544) | [2] | |||
Transfers | 57,959 | 44,325 | |||||
Gross carrying amount [member] | Right-of-use assets [member] | |||||||
IfrsStatementLineItems [Line Items] | |||||||
Balance end | 9,779,327 | 8,367,895 | 6,933,416 | ||||
Additions | 1,591,307 | 1,849,539 | |||||
Write-offs | (179,875) | [1] | (415,060) | [2] | |||
Gross carrying amount [member] | Land [member] | |||||||
IfrsStatementLineItems [Line Items] | |||||||
Balance end | 40,794 | 40,794 | 40,794 | ||||
Gross carrying amount [member] | Construction in progress [member] | |||||||
IfrsStatementLineItems [Line Items] | |||||||
Balance end | 783,667 | 513,881 | 1,585,673 | ||||
Additions | 3,953,345 | 2,734,056 | |||||
Write-offs | (984) | [1] | (739) | [2] | |||
Transfers | (3,682,575) | (3,805,109) | |||||
Accumulated depreciation and amortisation [member] | |||||||
IfrsStatementLineItems [Line Items] | |||||||
Balance end | (30,851,278) | (29,328,469) | (25,746,587) | ||||
Additions | (3,951,760) | (3,767,678) | |||||
Write-offs | 2,428,951 | [1] | 185,796 | [2] | |||
Accumulated depreciation and amortisation [member] | Switching Transmission Equipment [Member] | |||||||
IfrsStatementLineItems [Line Items] | |||||||
Balance end | (18,187,994) | (18,130,526) | (16,389,213) | ||||
Additions | (1,983,589) | (1,906,480) | |||||
Write-offs | 1,926,121 | 165,167 | [2] | ||||
Accumulated depreciation and amortisation [member] | Fiber Optic Cables [Member] | |||||||
IfrsStatementLineItems [Line Items] | |||||||
Balance end | (482,613) | (410,567) | |||||
Additions | (65,669) | (72,046) | |||||
Write-offs | [1] | 26,077 | |||||
Accumulated depreciation and amortisation [member] | Free Leased Handsets [Member] | |||||||
IfrsStatementLineItems [Line Items] | |||||||
Balance end | (2,398,217) | (2,256,863) | |||||
Additions | (145,661) | (143,309) | |||||
Write-offs | [2] | 1,955 | |||||
Accumulated depreciation and amortisation [member] | Network infrastructure [member] | |||||||
IfrsStatementLineItems [Line Items] | |||||||
Balance end | (4,018,854) | (3,593,833) | |||||
Additions | (408,540) | (432,549) | |||||
Write-offs | 384,239 | [1] | 7,528 | [2] | |||
Accumulated depreciation and amortisation [member] | Informatics Assets [Member] | |||||||
IfrsStatementLineItems [Line Items] | |||||||
Balance end | (1,629,730) | (1,617,970) | (1,565,309) | ||||
Additions | (58,209) | (62,649) | |||||
Write-offs | (46,584) | [1] | 9,988 | [2] | |||
Accumulated depreciation and amortisation [member] | General Use Assets [Member] | |||||||
IfrsStatementLineItems [Line Items] | |||||||
Balance end | (649,229) | (637,903) | (590,658) | ||||
Additions | (48,204) | (48,403) | |||||
Write-offs | 36,878 | [1] | 1,158 | [2] | |||
Accumulated depreciation and amortisation [member] | Right-of-use assets [member] | |||||||
IfrsStatementLineItems [Line Items] | |||||||
Balance end | (3,284,274) | ||||||
Accumulated depreciation and amortisation [member] | Fiber Optic Cables 3 [Member] | |||||||
IfrsStatementLineItems [Line Items] | |||||||
Balance end | (522,205) | ||||||
Accumulated depreciation and amortisation [member] | Free Leased Handsets 2 [Member] | |||||||
IfrsStatementLineItems [Line Items] | |||||||
Balance end | (2,534,691) | ||||||
Write-offs | [1] | 9,187 | |||||
Accumulated depreciation and amortisation [member] | Network Infrastructure 3 [Member] | |||||||
IfrsStatementLineItems [Line Items] | |||||||
Balance end | (4,043,155) | ||||||
Accumulated depreciation and amortisation [member] | Right Of Use In Leases [Member] | |||||||
IfrsStatementLineItems [Line Items] | |||||||
Balance end | (2,042,386) | R$ 940144 | |||||
Additions | R$ 1241888 | R$ 1102242 | |||||
[1] | Net write-offs are mainly represented by: | ||||||
[2] | The amount of R$ 415,060 is represented by remeasurement of contracts and includes changes in the term and scope of leases and a review of the estimate in relation to low-value vehicle contracts. |
Schedule of depreciation rates
Schedule of depreciation rates (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Communication and network equipment [member] | Bottom of range [member] | |
IfrsStatementLineItems [Line Items] | |
Depreciation rates | 8.00% |
Communication and network equipment [member] | Top of range [member] | |
IfrsStatementLineItems [Line Items] | |
Depreciation rates | 14.29% |
Fiber Optic Cables [Member] | Bottom of range [member] | |
IfrsStatementLineItems [Line Items] | |
Depreciation rates | 4.00% |
Fiber Optic Cables [Member] | Top of range [member] | |
IfrsStatementLineItems [Line Items] | |
Depreciation rates | 10.00% |
Free Leased Handsets [Member] | Bottom of range [member] | |
IfrsStatementLineItems [Line Items] | |
Depreciation rates | 14.28% |
Free Leased Handsets [Member] | Top of range [member] | |
IfrsStatementLineItems [Line Items] | |
Depreciation rates | 50.00% |
Network infrastructure [member] | Bottom of range [member] | |
IfrsStatementLineItems [Line Items] | |
Depreciation rates | 4.00% |
Network infrastructure [member] | Top of range [member] | |
IfrsStatementLineItems [Line Items] | |
Depreciation rates | 20.00% |
Informatics Assets [Member] | Bottom of range [member] | |
IfrsStatementLineItems [Line Items] | |
Depreciation rates | 10.00% |
Informatics Assets [Member] | Top of range [member] | |
IfrsStatementLineItems [Line Items] | |
Depreciation rates | 20.00% |
General Use Assets [Member] | Bottom of range [member] | |
IfrsStatementLineItems [Line Items] | |
Depreciation rates | 10.00% |
General Use Assets [Member] | Top of range [member] | |
IfrsStatementLineItems [Line Items] | |
Depreciation rates | 20.00% |
Schedule of movement in intangi
Schedule of movement in intangible assets (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
IfrsStatementLineItems [Line Items] | |||
Intangible assets, beginning balance | R$ 10585079 | R$ 9027075 | R$ 9300756 |
Additions/(Amortization) | 2,612,394 | (641,281) | |
Write-offs | (1,054,390) | 29 | |
Transfers | |||
Balance of merged company | 367,571 | ||
Licences [member] | |||
IfrsStatementLineItems [Line Items] | |||
Intangible assets, beginning balance | 2,478,986 | 2,739,028 | 3,091,216 |
Additions/(Amortization) | (1,164,210) | (1,286,295) | |
Write-offs | (1,947) | 35 | |
Transfers | 906,115 | 934,072 | |
Balance of merged company | |||
Authorizations [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Intangible assets, beginning balance | 4,793,831 | 4,115,007 | 4,533,381 |
Additions/(Amortization) | (491,788) | (505,723) | |
Write-offs | (966) | (6) | |
Transfers | 1,171,578 | 87,355 | |
Balance of merged company | |||
Goodwill [member] | |||
IfrsStatementLineItems [Line Items] | |||
Intangible assets, beginning balance | 475,743 | 1,527,220 | 1,159,649 |
Additions/(Amortization) | |||
Write-offs | (1,051,477) | ||
Transfers | |||
Balance of merged company | 367,571 | ||
Right To Use Infrastructure Of Lt Amazonas [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Intangible assets, beginning balance | 109,524 | 109,900 | 109,123 |
Additions/(Amortization) | (8,731) | 777 | |
Write-offs | |||
Transfers | 8,355 | ||
Balance of merged company | |||
Other intangible assets [member] | |||
IfrsStatementLineItems [Line Items] | |||
Intangible assets, beginning balance | 154,035 | 175,345 | 198,111 |
Additions/(Amortization) | (24,800) | (25,032) | |
Write-offs | |||
Transfers | 3,490 | 2,266 | |
Balance of merged company | |||
Intangible assets under development [member] | |||
IfrsStatementLineItems [Line Items] | |||
Intangible assets, beginning balance | 2,572,960 | 360,575 | 209,276 |
Additions/(Amortization) | 4,301,923 | 1,174,992 | |
Write-offs | |||
Transfers | (2,089,538) | (1,023,693) | |
Balance of merged company | |||
Gross carrying amount [member] | |||
IfrsStatementLineItems [Line Items] | |||
Intangible assets, beginning balance | 34,630,541 | 31,444,050 | 29,861,788 |
Additions/(Amortization) | 4,352,331 | 1,215,636 | |
Write-offs | (1,165,840) | (945) | |
Transfers | |||
Balance of merged company | 367,571 | ||
Gross carrying amount [member] | Licences [member] | |||
IfrsStatementLineItems [Line Items] | |||
Intangible assets, beginning balance | 19,911,004 | 19,117,515 | 18,184,382 |
Additions/(Amortization) | |||
Write-offs | (112,626) | (939) | |
Transfers | 906,115 | 934,072 | |
Balance of merged company | |||
Gross carrying amount [member] | Authorizations [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Intangible assets, beginning balance | 11,151,497 | 9,931,248 | 9,811,794 |
Additions/(Amortization) | 50,408 | 32,105 | |
Write-offs | (1,737) | (6) | |
Transfers | 1,171,578 | 87,355 | |
Balance of merged company | |||
Gross carrying amount [member] | Goodwill [member] | |||
IfrsStatementLineItems [Line Items] | |||
Intangible assets, beginning balance | 475,743 | 1,527,220 | 1,159,649 |
Additions/(Amortization) | |||
Write-offs | (1,051,477) | ||
Transfers | |||
Balance of merged company | 367,571 | ||
Gross carrying amount [member] | Right To Use Infrastructure Of Lt Amazonas [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Intangible assets, beginning balance | 186,221 | 177,866 | 169,327 |
Additions/(Amortization) | 8,539 | ||
Write-offs | |||
Transfers | 8,355 | ||
Balance of merged company | |||
Gross carrying amount [member] | Other intangible assets [member] | |||
IfrsStatementLineItems [Line Items] | |||
Intangible assets, beginning balance | 333,116 | 329,626 | 327,360 |
Additions/(Amortization) | |||
Write-offs | |||
Transfers | 3,490 | 2,266 | |
Balance of merged company | |||
Gross carrying amount [member] | Intangible assets under development [member] | |||
IfrsStatementLineItems [Line Items] | |||
Intangible assets, beginning balance | 2,572,960 | 360,575 | 209,276 |
Additions/(Amortization) | 4,301,923 | 1,174,992 | |
Write-offs | |||
Transfers | (2,089,538) | (1,023,693) | |
Balance of merged company | |||
Accumulated depreciation and amortisation [member] | |||
IfrsStatementLineItems [Line Items] | |||
Intangible assets, beginning balance | (24,045,462) | (22,416,975) | (20,561,032) |
Additions/(Amortization) | (1,739,937) | (1,856,917) | |
Write-offs | 111,450 | 974 | |
Transfers | |||
Accumulated depreciation and amortisation [member] | Licences [member] | |||
IfrsStatementLineItems [Line Items] | |||
Intangible assets, beginning balance | (17,432,018) | (16,378,487) | (15,093,166) |
Additions/(Amortization) | (1,164,210) | (1,286,295) | |
Write-offs | 110,679 | 974 | |
Transfers | |||
Balance of merged company | |||
Accumulated depreciation and amortisation [member] | Authorizations [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Intangible assets, beginning balance | (6,357,666) | (5,816,241) | (5,278,413) |
Additions/(Amortization) | (542,196) | (537,828) | |
Write-offs | 771 | ||
Transfers | |||
Balance of merged company | |||
Accumulated depreciation and amortisation [member] | Right To Use Infrastructure Of Lt Amazonas [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Intangible assets, beginning balance | (76,697) | (67,966) | (60,204) |
Additions/(Amortization) | (8,731) | (7,762) | |
Write-offs | |||
Transfers | |||
Balance of merged company | |||
Accumulated depreciation and amortisation [member] | Other intangible assets [member] | |||
IfrsStatementLineItems [Line Items] | |||
Intangible assets, beginning balance | (179,081) | (154,281) | R$ 129249 |
Additions/(Amortization) | (24,800) | (25,032) | |
Write-offs | |||
Balance of merged company |
Schedule of amortization rates
Schedule of amortization rates (Details) Pure in Thousands | 12 Months Ended |
Dec. 31, 2021 | |
Licences [member] | |
IfrsStatementLineItems [Line Items] | |
Amortization rates | 2000.00% |
Authorizations [Member] | Bottom of range [member] | |
IfrsStatementLineItems [Line Items] | |
Amortization rates | 500.00% |
Authorizations [Member] | Top of range [member] | |
IfrsStatementLineItems [Line Items] | |
Amortization rates | 5000.00% |
Righ To Use Infrastructure [Member] | |
IfrsStatementLineItems [Line Items] | |
Amortization rates | 500.00% |
Other intangible assets [member] | Bottom of range [member] | |
IfrsStatementLineItems [Line Items] | |
Amortization rates | 700.00% |
Other intangible assets [member] | Top of range [member] | |
IfrsStatementLineItems [Line Items] | |
Amortization rates | 1000.00% |
Schedule of lease receivables (
Schedule of lease receivables (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
IfrsStatementLineItems [Line Items] | ||
Finance lease receivables | R$ 243121 | R$ 162198 |
Current portion | (30,076) | (5,357) |
Non-current portion | 213,045 | 156,841 |
L T Amazonas [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Finance lease receivables | 166,944 | R$ 162198 |
Sublease Stores [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Finance lease receivables | R$ 76177 |
Schedule of lease receivables n
Schedule of lease receivables nominal and present value (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | |
IfrsStatementLineItems [Line Items] | |||
Subleases stores | R$ 390000 | R$ 1862479 | |
Lt amazon | 243,121 | 162,198 | |
L T Amazonas [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Lt amazon | 166,944 | R$ 162198 | |
Up To December [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Subleases stores | 55,939 | ||
Up To December [Member] | L T Amazonas [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Subleases stores | [1] | 26,124 | |
Up To December [Member] | Sub Leases [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Subleases stores | [2] | 29,815 | |
Jan 2023 Dec 2026 [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Subleases stores | 167,320 | ||
Jan 2023 Dec 2026 [Member] | L T Amazonas [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Subleases stores | [1] | 106,491 | |
Jan 2023 Dec 2026 [Member] | Sub Leases [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Subleases stores | [2] | 60,829 | |
January 2027 Onwards [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Subleases stores | 176,895 | ||
January 2027 Onwards [Member] | L T Amazonas [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Subleases stores | [1] | 176,895 | |
Nominal Value [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Subleases stores | 400,154 | ||
Nominal Value [Member] | L T Amazonas [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Subleases stores | [1] | 309,510 | |
Nominal Value [Member] | Sub Leases [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Subleases stores | [2] | 90,644 | |
Present Value [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Lt amazon | 243,121 | ||
Present Value [Member] | L T Amazonas [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Lt amazon | [1] | 166,944 | |
Present Value [Member] | Sub Leases [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Lt amazon | [1] | R$ 76177 | |
[1] | LT Amazonas | ||
[2] | leaseback |
Intangible assets (Details Narr
Intangible assets (Details Narrative) - BRL (R$) R$ in Thousands | Aug. 29, 2012 | Dec. 31, 2014 | Dec. 31, 2009 | Nov. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2019 | Dec. 31, 2005 |
Bottom of range [member] | |||||||
IfrsStatementLineItems [Line Items] | |||||||
Licenses period | 10 years | ||||||
Top of range [member] | |||||||
IfrsStatementLineItems [Line Items] | |||||||
Licenses period | 20 years | ||||||
Licences [member] | |||||||
IfrsStatementLineItems [Line Items] | |||||||
Subsidiary purchased Lot 2 | R$ 1199000 | R$ 1739000 | |||||
Total auction amount | R$ 1199000 | ||||||
Intangible asset | 884,000 | ||||||
Disbursements costs | R$ 2680000 | ||||||
Licences and franchises [member] | |||||||
IfrsStatementLineItems [Line Items] | |||||||
Description of additional obligations | The 2.3GHz and 26GHz radio frequencies are readily available for use by the Company (operating assets), generating the registration in “Authorizations” of the amounts related to the licenses (R$ 614 million) and the obligations related to the 26GHz license, which will be fulfilled through EACE (R$ 550 million). The disbursements with EACE (R$ 633 million), provided for in the Public Notice, will occur in 5 semi-annual installments between 2022 and 2024, and are monetarily restated by the IGP-DI. The Company evaluated the application of the concept of adjustment to present value (“AVP”) upon initial recognition (R$ 83 million). | ||||||
Intangible assets | R$ 3584000 | ||||||
Assets in progress | 2,394,000 | ||||||
Authorizations | R$ 1190000 | ||||||
Licences And Franchises 1 [Member] | |||||||
IfrsStatementLineItems [Line Items] | |||||||
Description of additional obligations | The 3.5GHz radio frequency is not readily available, requiring spectrum cleaning activities to be available for use, and, thus, it is registered in assets in progress (R$ 270 million). Therefore, the obligations related to this activity, to be carried out by EAF (R$ 2,104 million) are also recorded under assets in progress | ||||||
Licences And Franchises 2 [Member] | |||||||
IfrsStatementLineItems [Line Items] | |||||||
Description of additional obligations | the Company recorded R$ 1 million in intangible assets referring to Selic interest incurred on the 3.5GHz radio frequency and R$ 19 million related to the monetary restatement of amounts due to EAF. Said balances are recorded under assets in progress. | ||||||
T I M Fiber S P Ltda And T I M Fiber R J S A [Member] | |||||||
IfrsStatementLineItems [Line Items] | |||||||
Acquisition of goodwill | R$ 1159649 | ||||||
T I M S A [Member] | |||||||
IfrsStatementLineItems [Line Items] | |||||||
Acquisition of goodwill | R$ 210015 | ||||||
Description of closing of the transaction | TIM S.A. wrote-off about 90% of the total goodwill recorded in the acquisition of TIM Fiber SP Ltda. and TIM Fiber RJ S.A. in the amount of R$ 1,051,477. As a result, IHS currently holds 51% of the share capital of I-Systems, with TIM S.A. having a minority (non-controlling) interest of 49% in I-Systems. Consequently, with the closing of this deal in November 2021, the goodwill initially recorded on the acquisition of the companies Fiber RJ and Fiber SP was reduced to R$ 108,171. | ||||||
T I M Sul And T I M Nordeste [Member] | |||||||
IfrsStatementLineItems [Line Items] | |||||||
Acquisition of goodwill | R$ 157556 |
Schedule of lease liabilities (
Schedule of lease liabilities (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | |||
IfrsStatementLineItems [Line Items] | |||||
Subtotal | R$ 1952178 | R$ 1661822 | |||
Total | 9,063,539 | 8,378,835 | |||
Current portion | (1,269,878) | (1,054,709) | |||
Non-current portion | 7,793,661 | 7,324,126 | |||
L T Amazonas 1 [Member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Subtotal | [1] | 302,091 | 290,385 | ||
Sale Of Towers [Member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Subtotal | 1,507,629 | [2] | 1,256,410 | ||
Other Finance Lease Liabilities [Member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Subtotal | 142,458 | 115,027 | [3] | ||
Lease Network [Member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Subtotal | 3,345,930 | 3,252,463 | |||
Lease Stores And Kiosks [Member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Subtotal | 653,422 | 434,990 | |||
Lease Land Network [Member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Subtotal | 1,657,345 | 1,606,567 | |||
Lease Fiber [Member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Subtotal | 1,454,664 | 1,422,993 | |||
Subtotal I F R S 16 [Member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Subtotal | R$ 7111361 | R$ 6717013 | |||
[1] | LT Amazonas | ||||
[2] | leaseback | ||||
[3] | It is substantially represented by lease transactions in transmission towers. |
Schedule of other lease operati
Schedule of other lease operations (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | |
IfrsStatementLineItems [Line Items] | |||
[custom:FinanceLeaseLiabilities-0] | R$ 1952178 | R$ 1661822 | |
Lease Stores And Kiosks [Member] | |||
IfrsStatementLineItems [Line Items] | |||
[custom:FinanceLeaseLiabilities-0] | 653,422 | 434,990 | |
Lease Land Network [Member] | |||
IfrsStatementLineItems [Line Items] | |||
[custom:FinanceLeaseLiabilities-0] | 1,657,345 | 1,606,567 | |
Lease Fiber [Member] | |||
IfrsStatementLineItems [Line Items] | |||
[custom:FinanceLeaseLiabilities-0] | 1,454,664 | R$ 1422993 | |
Up To December 2022 [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Total other lease operations | 2,139,718 | ||
[custom:FinanceLeaseLiabilities-0] | [1] | 1,808,221 | |
Up To December 2022 [Member] | Lease Network Infrastructure [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Total other lease operations | 752,818 | ||
Up To December 2022 [Member] | L T Amazonas 1 [Member] | |||
IfrsStatementLineItems [Line Items] | |||
[custom:FinanceLeaseLiabilities-0] | [2] | 57,349 | |
Up To December 2022 [Member] | Sale Of Towers [Member] | |||
IfrsStatementLineItems [Line Items] | |||
[custom:FinanceLeaseLiabilities-0] | [3] | 245,800 | |
Up To December 2022 [Member] | Other Finance Lease Liabilities [Member] | |||
IfrsStatementLineItems [Line Items] | |||
[custom:FinanceLeaseLiabilities-0] | [4] | 28,348 | |
January 2023 To December 2026 [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Total other lease operations | 6,431,022 | ||
[custom:FinanceLeaseLiabilities-0] | [1] | 5,123,959 | |
January 2023 To December 2026 [Member] | Lease Network Infrastructure [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Total other lease operations | 2,450,689 | ||
January 2023 To December 2026 [Member] | Lease Stores And Kiosks [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Total other lease operations | 440,996 | ||
January 2023 To December 2026 [Member] | Lease Land Network [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Total other lease operations | 1,135,266 | ||
January 2023 To December 2026 [Member] | Lease Fiber [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Total other lease operations | 1,097,008 | ||
January 2023 To December 2026 [Member] | L T Amazonas 1 [Member] | |||
IfrsStatementLineItems [Line Items] | |||
[custom:FinanceLeaseLiabilities-0] | [2] | 202,271 | |
January 2023 To December 2026 [Member] | Sale Of Towers [Member] | |||
IfrsStatementLineItems [Line Items] | |||
[custom:FinanceLeaseLiabilities-0] | [3] | 992,299 | |
January 2023 To December 2026 [Member] | Other Finance Lease Liabilities [Member] | |||
IfrsStatementLineItems [Line Items] | |||
[custom:FinanceLeaseLiabilities-0] | [4] | 112,493 | |
January 2026 Onwards [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Total other lease operations | 5,898,599 | ||
[custom:FinanceLeaseLiabilities-0] | [1] | 3,284,014 | |
January 2026 Onwards [Member] | L T Amazonas 1 [Member] | |||
IfrsStatementLineItems [Line Items] | |||
[custom:FinanceLeaseLiabilities-0] | [2] | 336,138 | |
January 2026 Onwards [Member] | Sale Of Towers [Member] | |||
IfrsStatementLineItems [Line Items] | |||
[custom:FinanceLeaseLiabilities-0] | [3] | 2,135,989 | |
January 2026 Onwards [Member] | Other Finance Lease Liabilities [Member] | |||
IfrsStatementLineItems [Line Items] | |||
[custom:FinanceLeaseLiabilities-0] | [4] | 142,458 | |
Nominal Value [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Total other lease operations | 14,469,339 | ||
[custom:FinanceLeaseLiabilities-0] | [1] | 10,216,194 | |
Nominal Value [Member] | L T Amazonas 1 [Member] | |||
IfrsStatementLineItems [Line Items] | |||
[custom:FinanceLeaseLiabilities-0] | [2] | 595,758 | |
Nominal Value [Member] | Sale Of Towers [Member] | |||
IfrsStatementLineItems [Line Items] | |||
[custom:FinanceLeaseLiabilities-0] | [3] | 3,374,088 | |
Nominal Value [Member] | Other Finance Lease Liabilities [Member] | |||
IfrsStatementLineItems [Line Items] | |||
[custom:FinanceLeaseLiabilities-0] | [4] | 283,299 | |
Nominal Value [Member] | Lease Network Infrastructure [Member] | |||
IfrsStatementLineItems [Line Items] | |||
[custom:FinanceLeaseLiabilities-0] | 4,939,126 | ||
Nominal Value [Member] | Lease Stores And Kiosks [Member] | |||
IfrsStatementLineItems [Line Items] | |||
[custom:FinanceLeaseLiabilities-0] | 980,662 | ||
Nominal Value [Member] | Lease Network [Member] | |||
IfrsStatementLineItems [Line Items] | |||
[custom:FinanceLeaseLiabilities-0] | 2,667,562 | ||
Nominal Value [Member] | Lease Fiber [Member] | |||
IfrsStatementLineItems [Line Items] | |||
[custom:FinanceLeaseLiabilities-0] | 1,628,844 | ||
Present Value [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Total other lease operations | 9,063,539 | ||
[custom:FinanceLeaseLiabilities-0] | [1] | 7,111,361 | |
Present Value [Member] | L T Amazonas 1 [Member] | |||
IfrsStatementLineItems [Line Items] | |||
[custom:FinanceLeaseLiabilities-0] | [2] | 302,091 | |
Present Value [Member] | Sale Of Towers [Member] | |||
IfrsStatementLineItems [Line Items] | |||
[custom:FinanceLeaseLiabilities-0] | [3] | 1,507,629 | |
Present Value [Member] | Other Finance Lease Liabilities [Member] | |||
IfrsStatementLineItems [Line Items] | |||
[custom:FinanceLeaseLiabilities-0] | [4] | 142,458 | |
Present Value [Member] | Lease Network Infrastructure [Member] | |||
IfrsStatementLineItems [Line Items] | |||
[custom:FinanceLeaseLiabilities-0] | 3,345,930 | ||
Present Value [Member] | Lease Stores And Kiosks [Member] | |||
IfrsStatementLineItems [Line Items] | |||
[custom:FinanceLeaseLiabilities-0] | 653,422 | ||
Present Value [Member] | Lease Network [Member] | |||
IfrsStatementLineItems [Line Items] | |||
[custom:FinanceLeaseLiabilities-0] | 1,657,345 | ||
Present Value [Member] | Lease Fiber [Member] | |||
IfrsStatementLineItems [Line Items] | |||
[custom:FinanceLeaseLiabilities-0] | 1,454,664 | ||
January 2027 Onwards [Member] | Lease Network Infrastructure [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Total other lease operations | 1,735,619 | ||
January 2027 Onwards [Member] | Lease Stores And Kiosks [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Total other lease operations | 356,198 | ||
January 2027 Onwards [Member] | Lease Land Network [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Total other lease operations | 1,192,197 | ||
Up To December 2020 [Member] | Lease Stores And Kiosks [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Total other lease operations | 183,468 | ||
Up To December 2020 [Member] | Lease Land Network [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Total other lease operations | 340,099 | ||
Up To December 2020 [Member] | Lease Fiber [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Total other lease operations | R$ 531836 | ||
[1] | Other leases: | ||
[2] | LT Amazonas | ||
[3] | leaseback | ||
[4] | It is substantially represented by lease transactions in transmission towers. |
Leases (Details Narrative)
Leases (Details Narrative) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2021BRL (R$)Number | Dec. 31, 2020BRL (R$) | |
IfrsStatementLineItems [Line Items] | ||
Interest paid | R$ 599296 | R$ 567261 |
Average incremental rate | 8.94% | 9.06% |
Rental expense | R$ 36310 | R$ 28523 |
Two Sales Agreements [Member] | T I M Celular S A [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Maximum number of towers owned | Number | 6,481 | |
Owned amount of telecommunications towers | R$ 3000000 | |
L T Amazonas 1 [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Finance lease liabilities interest rate | 14.44% | |
Sale Of Towers [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Sales | R$ 2651247 | |
Deferred revenue | R$ 1088390 | |
Sale Of Towers [Member] | Bottom of range [member] | ||
IfrsStatementLineItems [Line Items] | ||
Finance lease liabilities interest rate | 11.01% | |
Sale Of Towers [Member] | Top of range [member] | ||
IfrsStatementLineItems [Line Items] | ||
Finance lease liabilities interest rate | 17.08% | |
L T Amazonas [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Finance lease receivables interest rate | 12.56% |
Other amounts recoverable (Deta
Other amounts recoverable (Details Narrative) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Other Amounts Recoverable | ||
Regulatory credits recoverable | R$ 28661 | R$ 43906 |
Schedule of supplier accounts p
Schedule of supplier accounts payable (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
IfrsStatementLineItems [Line Items] | ||
Current portion | R$ 3267404 | R$ 3128732 |
Trade Suppliers Related To Roaming [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Current portion | 3,267,404 | 3,128,732 |
Foreign Currency [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Current portion | 203,946 | 196,246 |
Foreign Currency [Member] | Current Installment [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Current portion | 3,267,404 | 3,128,732 |
Foreign Currency [Member] | Trade Suppliers Related To Roaming [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Current portion | 50,864 | 47,358 |
Foreign Currency [Member] | Trade Suppliers Related To Materials And Services 2 [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Current portion | 153,082 | 148,888 |
Local Currency [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Current portion | 3,063,458 | 2,932,486 |
Local Currency [Member] | Trade Suppliers Related To Materials And Services 1 [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Current portion | 2,966,897 | 2,839,547 |
Local Currency [Member] | Trade Suppliers Related To Interconnection [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Current portion | 65,464 | 64,066 |
Local Currency [Member] | Trade Suppliers Related To Roaming [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Current portion | 212 | 212 |
Local Currency [Member] | Trade Suppliers Related To Co Billing [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Current portion | R$ 30885 | R$ 28661 |
Schedule of licenses payables (
Schedule of licenses payables (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | |
Authorizations Payable | |||
Renewal of authorizations | R$ 191329 | R$ 188498 | |
Updated ANATEL liability | [1] | 164,269 | 146,949 |
Authorizations payable | [2] | 3,525,489 | |
Total | 3,881,087 | 335,447 | |
Current portion | (2,630,169) | (102,507) | |
Non-current portion | R$ 1250918 | R$ 232940 | |
[1] | On December 5, 2014, the company signed the authorization term of the 700 MHz band and paid the equivalent of R$1,678 million, recording the remaining balance in the amount of R$ 61 million as commercial liability, according to the payment method provided for in the notice. | ||
[2] | As described in note 15.f, in November 2021, TIM participated in the 5G Auction of the 2.3GHz, 3.5Ghz and 26Ghz radio frequency bands for the deployment of the 5th Generation mobile telephony, winning several lots in these radio frequencies. In December 2021, the Authorization Terms were signed, characterizing the actual acquisition of the right over the lots of these radio frequencies. |
The authorizations payable on D
The authorizations payable on December 31, 2021 due in long-term is in accordance with the following schedule: (Details) R$ in Thousands | Dec. 31, 2021BRL (R$) |
IfrsStatementLineItems [Line Items] | |
Total | R$ 1250918 |
Not later than one year [member] | |
IfrsStatementLineItems [Line Items] | |
Total | 406,371 |
Later than one year [member] | |
IfrsStatementLineItems [Line Items] | |
Total | 141,151 |
Later than one year and not later than two years [member] | |
IfrsStatementLineItems [Line Items] | |
Total | 46,535 |
Later than two years and not later than three years [member] | |
IfrsStatementLineItems [Line Items] | |
Total | 46,535 |
Later than three years and not later than four years [member] | |
IfrsStatementLineItems [Line Items] | |
Total | 46,535 |
Later than four years and not later than five years [member] | |
IfrsStatementLineItems [Line Items] | |
Total | 46,535 |
Later than five years and not later than seven years [member] | |
IfrsStatementLineItems [Line Items] | |
Total | 46,535 |
Later than seven years and not later than ten years [member] | |
IfrsStatementLineItems [Line Items] | |
Total | 46,535 |
Later than ten years [member] | |
IfrsStatementLineItems [Line Items] | |
Total | R$ 424186 |
The primary authorizations held
The primary authorizations held by TIM S.A. on December 31, 2021, as well as their expiration dates, are shown in the table below: (Details) - T I M Celular S A [Member] | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Amapa Roraima Para Amazonasand Maranhao [Member] | ||
IfrsStatementLineItems [Line Items] | ||
800 MHz, 900 MHz and 1,800 MHz | Mar 2031* | |
Additional frequencies 1,800 MHz | Apr 2023 | |
1,900 MHz and 2,100 MHz (3G) | Apr 2023 | |
2,500 MHz V1 Band (4G) | Oct 2027 | |
2,500 MHz (P Band (4G) | Part of AR92 (PA), Feb 2024* | |
700 MHz (4G) | Dec 2029 | |
2.3 GHz (5G) | - | |
3.5 GHz (5G) | Dec 2041 | |
26 GHz (5G) | Dec 2031 | |
Riode Janeiroand Espirito Santo [Member] | ||
IfrsStatementLineItems [Line Items] | ||
800 MHz, 900 MHz and 1,800 MHz | Mar 2031* | |
Additional frequencies 1,800 MHz | ES, Apr 2023 | |
1,900 MHz and 2,100 MHz (3G) | Apr 2023 | |
2,500 MHz V1 Band (4G) | Oct 2027 | |
2,500 MHz (P Band (4G) | Part of AR21 (RJ), Feb 2024* | |
700 MHz (4G) | Dec 2029 | |
2.3 GHz (5G) | Dec 2041 | |
3.5 GHz (5G) | Dec 2041 | |
26 GHz (5G) | Dec 2031 (lots I&J) & Dec 2041 (lot H) | |
450 MHz | Oct 2027 | |
Acre Rondonia Mato Grosso Mato Grossodo Sul Tocantins Distrito Federal Goias Rio Grandedo Sulexceptthemunicipalityof Pelotasandregionandthemunicipalitiesof Londrinaand Tamaranain Parana [Member] | ||
IfrsStatementLineItems [Line Items] | ||
800 MHz, 900 MHz and 1,800 MHz | Mar 2031* | |
Additional frequencies 1,800 MHz | Apr 2023 | |
1,900 MHz and 2,100 MHz (3G) | Apr 2023 | |
2,500 MHz V1 Band (4G) | Oct 2027 | |
2,500 MHz (P Band (4G) | Part of AR61 (DF), Feb 2024* | |
700 MHz (4G) | Dec 2029 | |
2.3 GHz (5G) | South – Dec 2041 | |
3.5 GHz (5G) | Dec 2041 | |
26 GHz (5G) | Dec 2031 (lots I&J) & Dec 2041 (lot H) | |
450 MHz | PR, Oct 2027 | |
Sao Paulo [Member] | ||
IfrsStatementLineItems [Line Items] | ||
800 MHz, 900 MHz and 1,800 MHz | Mar 2031* | |
Additional frequencies 1,800 MHz | Countryside, Apr 2023 | |
1,900 MHz and 2,100 MHz (3G) | Apr 2023 | |
2,500 MHz V1 Band (4G) | Oct 2027 | |
700 MHz (4G) | Dec 2029 | |
3.5 GHz (5G) | Dec 2041 | |
26 GHz (5G) | Dec 2031 (lots I&J) & Dec 2041 (lot H) | |
Paranaexceptthemunicipalitiesof Londrinaand Tamarana [Member] | ||
IfrsStatementLineItems [Line Items] | ||
800 MHz, 900 MHz and 1,800 MHz | Sep 2022* | |
Additional frequencies 1,800 MHz | Apr 2023 | |
1,900 MHz and 2,100 MHz (3G) | Apr 2023 | |
2,500 MHz V1 Band (4G) | Oct 2027 | |
2,500 MHz (P Band (4G) | AR41, except Curitiba and the Metropolitan Region, Feb 2024* | |
700 MHz (4G) | Dec 2029 | |
2.3 GHz (5G) | Dec 2041 | |
3.5 GHz (5G) | Dec 2041 | |
26 GHz (5G) | Dec 2031 (lots I&J) & Dec 2041 (lot H) | |
450 MHz | Oct 2027 | |
Santa Catarina [Member] | ||
IfrsStatementLineItems [Line Items] | ||
800 MHz, 900 MHz and 1,800 MHz | Sep 2023* | |
Additional frequencies 1,800 MHz | Apr 2023 | |
1,900 MHz and 2,100 MHz (3G) | Apr 2023 | |
2,500 MHz V1 Band (4G) | Oct 2027 | |
700 MHz (4G) | Dec 2029 | |
2.3 GHz (5G) | Dec 2041 | |
3.5 GHz (5G) | Dec 2041 | |
26 GHz (5G) | Dec 2031 (lots I&J) & Dec 2041 (lot H) | |
450 MHz | Oct 2027 | |
Municipalityandregionof Pelotasinthe Stateof Rio Grandedo Sul [Member] | ||
IfrsStatementLineItems [Line Items] | ||
800 MHz, 900 MHz and 1,800 MHz | Apr 2024* | |
1,900 MHz and 2,100 MHz (3G) | Apr 2023 | |
2,500 MHz V1 Band (4G) | Oct 2027 | |
700 MHz (4G) | Dec 2031 (lots I&J) & Dec 2041 (lot H) | |
2.3 GHz (5G) | Dec 2041 | |
3.5 GHz (5G) | Dec 2041 | |
Pernambuco [Member] | ||
IfrsStatementLineItems [Line Items] | ||
800 MHz, 900 MHz and 1,800 MHz | May 2024* | |
1,900 MHz and 2,100 MHz (3G) | Apr 2023 | |
2,500 MHz V1 Band (4G) | Oct 2027 | |
2,500 MHz (P Band (4G) | Part of AR81, July 2031 | |
700 MHz (4G) | Dec 2029 | |
3.5 GHz (5G) | Dec 2041 | |
26 GHz (5G) | Dec 2031 | |
Ceara [Member] | ||
IfrsStatementLineItems [Line Items] | ||
800 MHz, 900 MHz and 1,800 MHz | Nov 2023* | |
1,900 MHz and 2,100 MHz (3G) | Apr 2023 | |
2,500 MHz V1 Band (4G) | Oct 2027 | |
700 MHz (4G) | Dec 2029 | |
3.5 GHz (5G) | Dec 2041 | |
26 GHz (5G) | Dec S2031 | |
Paraiba [Member] | ||
IfrsStatementLineItems [Line Items] | ||
800 MHz, 900 MHz and 1,800 MHz | Dec 2023* | |
1,900 MHz and 2,100 MHz (3G) | Apr 2023 | |
2,500 MHz V1 Band (4G) | Oct 2027 | |
700 MHz (4G) | Dec 2029 | |
3.5 GHz (5G) | Dec 2041 | |
26 GHz (5G) | Dec 2031 | |
Rio Grandedo Norte [Member] | ||
IfrsStatementLineItems [Line Items] | ||
800 MHz, 900 MHz and 1,800 MHz | Dec 2023* | |
1,900 MHz and 2,100 MHz (3G) | Apr 2023 | |
2,500 MHz V1 Band (4G) | Oct 2027 | |
700 MHz (4G) | Dec 2029 | |
3.5 GHz (5G) | Dec 2041 | |
26 GHz (5G) | Dec 2031 | |
Alagoas [Member] | ||
IfrsStatementLineItems [Line Items] | ||
800 MHz, 900 MHz and 1,800 MHz | Dec 2023* | |
1,900 MHz and 2,100 MHz (3G) | Apr 2023 | |
2,500 MHz V1 Band (4G) | Oct 2027 | |
700 MHz (4G) | Dec 2029 | |
3.5 GHz (5G) | Dec 2041 | |
26 GHz (5G) | Dec 2031 | |
Piaui [Member] | ||
IfrsStatementLineItems [Line Items] | ||
800 MHz, 900 MHz and 1,800 MHz | Mar 2024* | |
1,900 MHz and 2,100 MHz (3G) | Apr 2023 | |
2,500 MHz V1 Band (4G) | Oct 2027 | |
700 MHz (4G) | Dec 2029 | |
3.5 GHz (5G) | Dec 2041 | |
26 GHz (5G) | Dec 2031 | |
Minas Geraisexceptthemunicipalitiesofthe P G Osector 3for 3 Gtheradiofrequenciesandother [Member] | ||
IfrsStatementLineItems [Line Items] | ||
800 MHz, 900 MHz and 1,800 MHz | Apr 2028* | |
Additional frequencies 1,800 MHz | Apr 2023 | |
1,900 MHz and 2,100 MHz (3G) | Apr 2023 | |
2,500 MHz V1 Band (4G) | Oct 2027 | |
2,500 MHz (P Band (4G) | Part of AR31, Feb 2030* | |
700 MHz (4G) | Dec 2029 | |
2.3 GHz (5G) | Dec 2041 | |
3.5 GHz (5G) | Dec 2041 | |
26 GHz (5G) | Dec 2031 (lots I&J) & Dec 2041 (lot H) | |
Bahiaand Sergipe [Member] | ||
IfrsStatementLineItems [Line Items] | ||
800 MHz, 900 MHz and 1,800 MHz | Aug 2027* | |
1,900 MHz and 2,100 MHz (3G) | Apr 2023 | |
2,500 MHz V1 Band (4G) | Oct 2027 | |
700 MHz (4G) | Dec 2029 | |
3.5 GHz (5G) | Dec 2041 | |
26 GHz (5G) | Dec 2031 |
Schedule of appropriation of fi
Schedule of appropriation of financial expenses (Details) R$ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021BRL (R$) | Dec. 31, 2021USD ($) | Dec. 31, 2020BRL (R$) | Dec. 31, 2020USD ($) | |
Reserve Quantities [Line Items] | ||||
Total | R$ 3845465 | R$ 2345032 | ||
Current | (538,450) | (1,689,385) | ||
Non-current | R$ 3307015 | 655,647 | ||
K F W Finnvera [Member] | ||||
Reserve Quantities [Line Items] | ||||
Currency | USD | |||
Charges | Libor 6M+ 0.75% p.a. | |||
Maturity | Jan 2024–Dec 2025 | |||
Total | R$ 278176 | 344,125 | ||
B A M L [Member] | ||||
Reserve Quantities [Line Items] | ||||
Currency | EUR | |||
Charges | 0.2790% p.a. | |||
Maturity | Aug 2021 | |||
Total | R$ 0 | 570,844 | ||
Scotland [Member] | ||||
Reserve Quantities [Line Items] | ||||
Currency | USD | |||
Charges | 1.2410–1.7340% p.a. | |||
Maturity | Apr 2024 | |||
Total | R$ 559650 | 1,030,761 | ||
B N P Paribas [Member] | ||||
Reserve Quantities [Line Items] | ||||
Currency | USD | |||
Charges | 7.0907% p.a. | |||
Maturity | Jan 2024 | |||
Total | R$ 515166 | |||
B N P Paribas [Member] | United States of America, Dollars | ||||
Reserve Quantities [Line Items] | ||||
Currency | BRL | |||
Charges | 2.8220% p.a. | |||
Maturity | Jan 2022 | |||
Total | $ | $ 428,793 | $ 399,302 | ||
Debentures [Member] | ||||
Reserve Quantities [Line Items] | ||||
Currency | BRL | |||
Charges | IPCA + 4.1682% p.a. (i) | |||
Maturity | June 2028 | |||
Total | R$ 1667399 | 0 | ||
B N D E S Investment Sustainment Program [Member] | ||||
Reserve Quantities [Line Items] | ||||
Currency | BRL | |||
Charges | IPCA + 4.2283% p.a. | |||
Maturity | Nov 2031 | |||
Total | R$ 396281 | R$ 0 |
Schedule of credit facilities (
Schedule of credit facilities (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2021 | |
Reserve Quantities [Line Items] | ||
Total amount | R$ 1862479 | R$ 390000 |
Amount used as at end | R$ 2252479 | |
Banco Nacional De Desenvolvimento Economico E Social [Member] | Financing And Credit Facilities One [Member] | ||
Reserve Quantities [Line Items] | ||
Currency | TJLP | |
[custom:BorrowingsMaturityStart] | May 2018 | |
Term | Mar 2022 | |
Remaining amount | R$ 1090000 | |
Total amount | R$ 1090000 | 0 |
Banco Nacional De Desenvolvimento Economico E Social [Member] | Financing And Credit Facilities Two [Member] | ||
Reserve Quantities [Line Items] | ||
Currency | TJLP | |
[custom:BorrowingsMaturityStart] | May 2018 | |
Term | Mar 2022 | |
Remaining amount | R$ 20000 | |
Total amount | R$ 20000 | 0 |
F I N A M E [Member] | Financing And Credit Facilities Three [Member] | ||
Reserve Quantities [Line Items] | ||
Currency | IPCA | |
[custom:BorrowingsMaturityStart] | Mar 2019 | |
Term | Mar 2022 | |
Remaining amount | R$ 390000 | |
Amount used as at end | R$ 0 | 390,000 |
B N B [Member] | Financing And Credit Facilities Four [Member] | ||
Reserve Quantities [Line Items] | ||
Currency | IPCA | |
[custom:BorrowingsMaturityStart] | Jan 2020 | |
Term | June 2023 | |
Remaining amount | R$ 752479 | |
Total amount | R$ 752479 | R$ 0 |
Schedule of long term portions
Schedule of long term portions of borrowing and financing (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
IfrsStatementLineItems [Line Items] | ||
Long-term portions of borrowing and financing | R$ 3307015 | R$ 655647 |
Later than four years and not later than five years [member] | ||
IfrsStatementLineItems [Line Items] | ||
Long-term portions of borrowing and financing | 88,818 | |
Later Than Five Years And Not Later Than Six Years [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Long-term portions of borrowing and financing | 1,125,526 | |
Later Than Six Years And Not Later Than Seven Years [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Long-term portions of borrowing and financing | 80,712 | |
Later Than Seven Years And Not Later Than Eight Years [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Long-term portions of borrowing and financing | 615,727 | |
Later Than Eight Years And Not Later Than Nine Years [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Long-term portions of borrowing and financing | 615,727 | |
Later Than Nine Years And Not Later Than Ten Years [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Long-term portions of borrowing and financing | 618,006 | |
Later Than Ten Years And Not Later Than Eleven Years [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Long-term portions of borrowing and financing | 55,714 | |
Later Than Eleven Years And Not Later Than Twelve Years [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Long-term portions of borrowing and financing | 55,714 | |
Later Than Twelve Years And Not Later Than Thirteen Years [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Long-term portions of borrowing and financing | R$ 51071 |
Schedule of nominal value of th
Schedule of nominal value of the loans (Details) R$ in Thousands | Dec. 31, 2021BRL (R$) |
IfrsStatementLineItems [Line Items] | |
Nominal value of loan | R$ 3845465 |
Later than two years and not later than three years [member] | |
IfrsStatementLineItems [Line Items] | |
Nominal value of loan | 538,450 |
Later than four years and not later than five years [member] | |
IfrsStatementLineItems [Line Items] | |
Nominal value of loan | 88,818 |
Later Than Five Years And Not Later Than Six Years [Member] | |
IfrsStatementLineItems [Line Items] | |
Nominal value of loan | 1,125,526 |
Later Than Six Years And Not Later Than Seven Years [Member] | |
IfrsStatementLineItems [Line Items] | |
Nominal value of loan | 80,712 |
Later Than Seven Years And Not Later Than Eight Years [Member] | |
IfrsStatementLineItems [Line Items] | |
Nominal value of loan | 615,727 |
Later Than Eight Years And Not Later Than Nine Years [Member] | |
IfrsStatementLineItems [Line Items] | |
Nominal value of loan | 615,727 |
Later Than Nine Years And Not Later Than Ten Years [Member] | |
IfrsStatementLineItems [Line Items] | |
Nominal value of loan | 618,006 |
Later Than Ten Years And Not Later Than Eleven Years [Member] | |
IfrsStatementLineItems [Line Items] | |
Nominal value of loan | 55,714 |
Later Than Eleven Years And Not Later Than Twelve Years [Member] | |
IfrsStatementLineItems [Line Items] | |
Nominal value of loan | 55,714 |
Later Than Twelve Years And Not Later Than Thirteen Years [Member] | |
IfrsStatementLineItems [Line Items] | |
Nominal value of loan | R$ 51071 |
Loans and financing (Details Na
Loans and financing (Details Narrative) - BRL (R$) | 1 Months Ended | 12 Months Ended | ||
Nov. 30, 2021 | Jun. 30, 2021 | Apr. 30, 2021 | Dec. 31, 2021 | |
Reserve Quantities [Line Items] | ||||
Notes and debentures issued | R$ 1600000000 | |||
Description of credit facility agreement | the remunerative interest of IPCA + 4.1682% p.a. can be automatically reduced by up to 0.25bps. The debentures will bear semiannual interest and amortization will take place, respectively, in the 5th, 6th and 7th year. The issue was aimed at financing projects for the implementation, expansion and modernization of fixed and mobile networks in different technologies, including 5G, and falls within the provisions of Law No. 12431 of June 24, 2011. Within the scope of this operation, the Company elected to sign an interest rate swap contract for hedging purposes, at the cost of CDI + 0.95% per annum | |||
Bank Of Nova A Scotia [Member] | ||||
Reserve Quantities [Line Items] | ||||
Fair value of operations | R$ 563259 | |||
Banco Nacional De Desenvolvimento Economico E Social [Member] | Bank Of Nova A Scotia [Member] | ||||
Reserve Quantities [Line Items] | ||||
Description of debt | the Company contracted a new loan with The Bank of Nova Scotia, in the amount of R$ 572 million, at the cost of CDI + 1.05% p.a. and a 3-year term | |||
B N P Paribas [Member] | ||||
Reserve Quantities [Line Items] | ||||
Description of debt | the Company contracted a new loan with BNP Paribas, in the amount of R$ 500 million, at the cost of CDI + 1.07% p.a. and a 2.9-year term. The operation aimed to strengthen the Company's cash for working capital. | |||
Fair value of operations | 524,422 | |||
F I N A M E [Member] | ||||
Reserve Quantities [Line Items] | ||||
Description of debt | the cost of IPCA + 4.2283% p.a. and a total term of 10 years with a 3-year grace period to start of amortization. The Company elected to sign an interest rate swap contract for hedging purposes, at the final cost of 96.95% of CDI. | |||
Amount of credit facility | R$ 390 | |||
Debentures [Member] | ||||
Reserve Quantities [Line Items] | ||||
Fair value of operations | 1,635,203 | |||
B I N D E S [Member] | ||||
Reserve Quantities [Line Items] | ||||
Fair value of operations | R$ 384073 |
Schedule of indirect taxes, cha
Schedule of indirect taxes, charges and contributions payable (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | |
Reserve Quantities [Line Items] | |||
Indirect taxes, charges and contributions payable | R$ 1421955 | R$ 938880 | |
Current portion | (1,418,682) | (935,778) | |
Non-current portion | 3,273 | 3,102 | |
Imposto Sobre Circulacao De Mercadorias Servicos [Member] | |||
Reserve Quantities [Line Items] | |||
Indirect taxes, charges and contributions payable | 303,721 | 359,498 | |
Agencia Nacionl De Telecomunicacoes Taxes And Fees [Member] | |||
Reserve Quantities [Line Items] | |||
Indirect taxes, charges and contributions payable | [1] | 1,042,933 | 509,087 |
Imposto Sobre Servicos [Member] | |||
Reserve Quantities [Line Items] | |||
Indirect taxes, charges and contributions payable | 66,075 | 66,082 | |
Other Direct Taxes [Member] | |||
Reserve Quantities [Line Items] | |||
Indirect taxes, charges and contributions payable | R$ 9226 | R$ 4213 | |
[1] | In 2020, to minimize the impacts of the pandemic, Provisional Act 952, dated April 15, 2020, was enacted, authorizing the postponement of payment of taxes, such as TFF, Condecine and CFRP, in the amount of R$ 790 million, to August 31, 2020. In the third quarter of 2020, the Company made a partial payment in the amount of R$ 300 million referring to CFRP and Condecine, but due to a preliminary injunction in court, there was no need to pay the Fistel (TFF), which remains outstanding until the final and unappealable decision. |
Indirect taxes, charges and c_3
Indirect taxes, charges and contributions payable (Details Narrative) | 12 Months Ended |
Dec. 31, 2021BRL (R$) | |
Indirect Taxes Charges And Contributions Payable | |
Partial payment of fees | R$ 300000000 |
Amount to be paid for fistel | 480,000,000 |
Default interest on fistel | R$ 51200000 |
Schedule of direct taxes charge
Schedule of direct taxes charges and contributions payable (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | |
Reserve Quantities [Line Items] | |||
Direct taxes, charges and contributions payable | R$ 258340 | R$ 508743 | |
Current portion | (245,113) | (296,299) | |
Non-current portion | 13,227 | 212,444 | |
Income Tax And Social Contribution On Income [Member] | |||
Reserve Quantities [Line Items] | |||
Direct taxes, charges and contributions payable | [1] | 186,294 | 313,145 |
P I S And C O F I N S [Member] | |||
Reserve Quantities [Line Items] | |||
Direct taxes, charges and contributions payable | 41,916 | 154,353 | |
Other Direct Taxes [Member] | |||
Reserve Quantities [Line Items] | |||
Direct taxes, charges and contributions payable | [2] | R$ 30130 | R$ 41245 |
[1] | Referring to the recharge of voice credits and data not yet used by customers relating to prepaid system services that are appropriate to the result when the actual use of these services by clients. | ||
[2] | Referring to the release of resources related to the financing line with BNDES (Investment Support Program-BNDES PSI). The sum of grants granted by BNDES up to December 31, 2021 is R$ 203 11,184 24,732 |
Schedule of deferred revenue (D
Schedule of deferred revenue (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | |
Reserve Quantities [Line Items] | |||
Deferred revenues | R$ 886340 | R$ 1021924 | |
Current installment | (197,179) | (266,436) | |
Non-current portion | 689,161 | 755,488 | |
Banco Nacional De Desenvolvimento Economico E Social [Member] | |||
Reserve Quantities [Line Items] | |||
Subsidies granted | 203 | ||
Subsidies granted outstanding | 11,184 | 24,732 | |
Services To Be Rendered Pre Paid [Member] | |||
Reserve Quantities [Line Items] | |||
Deferred revenues | [1] | 118,795 | 189,482 |
Government Grants [Member] | |||
Reserve Quantities [Line Items] | |||
Deferred revenues | [2] | 11,184 | 24,732 |
Prepaid Revenues [Member] | |||
Reserve Quantities [Line Items] | |||
Deferred revenues | 8,522 | 11,163 | |
Deferred Revenue On Sale Of Towers [Member] | |||
Reserve Quantities [Line Items] | |||
Deferred revenues | [3] | 734,826 | 788,921 |
Contractual Liabilities [Member] | |||
Reserve Quantities [Line Items] | |||
Deferred revenues | [4] | R$ 13013 | R$ 7626 |
[1] | Referring to the recharge of voice credits and data not yet used by customers relating to prepaid system services that are appropriate to the result when the actual use of these services by clients. | ||
[2] | Referring to the release of resources related to the financing line with BNDES (Investment Support Program-BNDES PSI). The sum of grants granted by BNDES up to December 31, 2021 is R$ 203 11,184 24,732 | ||
[3] | Referring to the amount of revenue to be appropriated by the sale of the towers (note 16). | ||
[4] | Contracts with customers. The table below includes information on the portion of trade accounts receivable, from which contractual assets and liabilities originate. |
Schedule of contractual assets
Schedule of contractual assets and liabilities (Details) R$ in Thousands | Dec. 31, 2021BRL (R$) |
Accounts receivable included in trade accounts receivable | R$ 2051120 |
Contractual assets (note 6) | 15,340 |
Contractual liability | R$ 13013 |
Summary of the main changes dur
Summary of the main changes during the fiscal year: (Details) R$ in Thousands | 12 Months Ended |
Dec. 31, 2021BRL (R$) | |
Balance beginning | R$ 7288 |
Additions | 8,800 |
Write-offs | (13,761) |
Balance ending | R$ 2327 |
Schedule of balances of contrac
Schedule of balances of contractual assets and liabilities are expected to be realized (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
IfrsStatementLineItems [Line Items] | ||
Contractual assets (liabilities) | R$ 2327 | R$ 7288 |
Accounting Estimates Two Thousand Twenty One [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Contractual assets (liabilities) | R$ 3685 | |
Accounting Estimates Two Thousand Twenty Two [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Contractual assets (liabilities) | R$ 1358 |
The provision for judicial and
The provision for judicial and administrative proceedings constituted, updated, is composed as follows: (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
IfrsStatementLineItems [Line Items] | |||
Provision for legal and administrative proceedings | R$ 960881 | R$ 886947 | R$ 703522 |
Provision For Civil [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Provision for legal and administrative proceedings | 309,019 | 245,432 | 208,202 |
Provision For Labor [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Provision for legal and administrative proceedings | 192,132 | 213,026 | 208,224 |
Provision For Tax [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Provision for legal and administrative proceedings | 429,951 | 399,288 | 254,833 |
Provision For Regulatory [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Provision for legal and administrative proceedings | R$ 29779 | R$ 29201 | R$ 32263 |
The changes in the provision fo
The changes in the provision for judicial and administrative proceedings are summarized below: (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
IfrsStatementLineItems [Line Items] | ||
Beginning balance | R$ 886947 | R$ 703522 |
Additions, net of reversals | 278,789 | 333,724 |
Payments | (316,804) | (413,634) |
Monetary adjustment | 111,949 | 137,379 |
Ending balance | 960,881 | 886,947 |
[custom:BalanceCompanyIncorporated] | 125,956 | |
Provision For Civil [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Beginning balance | 245,432 | 208,202 |
Additions, net of reversals | 175,715 | 224,416 |
Payments | (194,501) | (266,872) |
Monetary adjustment | 82,373 | 75,185 |
Ending balance | 309,019 | 245,432 |
[custom:BalanceCompanyIncorporated] | 4,501 | |
Provision For Labor [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Beginning balance | 213,026 | 208,224 |
Additions, net of reversals | 71,961 | 63,649 |
Payments | (98,730) | (138,899) |
Monetary adjustment | 5,875 | 34,361 |
Ending balance | 192,132 | 213,026 |
[custom:BalanceCompanyIncorporated] | 45,691 | |
Provision For Tax [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Beginning balance | 399,288 | 254,833 |
Additions, net of reversals | 31,078 | 48,897 |
Payments | (23,539) | (7,792) |
Monetary adjustment | 23,124 | 27,704 |
Ending balance | 429,951 | 399,288 |
[custom:BalanceCompanyIncorporated] | 75,646 | |
Provision For Regulatory [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Beginning balance | 29,201 | 32,263 |
Additions, net of reversals | 35 | (3,238) |
Payments | (34) | (71) |
Monetary adjustment | 577 | 129 |
Ending balance | R$ 29779 | 29,201 |
[custom:BalanceCompanyIncorporated] | R$ 118 |
Tax lawsuits (Details)
Tax lawsuits (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
IfrsStatementLineItems [Line Items] | |||
Tax process | R$ 960881 | R$ 886947 | R$ 703522 |
Provision For Tax [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Tax process | 429,951 | 399,288 | R$ 254833 |
Provision For Tax [Member] | Federal Taxes [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Tax process | 202,743 | 182,146 | |
Provision For Tax [Member] | State Taxes [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Tax process | 145,436 | 135,891 | |
Provision For Tax [Member] | Municipal Taxes [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Tax process | 7,626 | 5,633 | |
Provision For Tax [Member] | Tim S A Proceedings Purchase Price Allocation [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Tax process | R$ 74146 | R$ 75618 |
The company has actions of a ci
The company has actions of a civil, labor, tax and regulatory nature involving risks of loss classified by its legal advisers and the administration as possible, for which there is no provision for legal and administrative proceedings constituted, and no (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
IfrsStatementLineItems [Line Items] | ||
Estimated financial effect of contingent liabilities | R$ 18140556 | R$ 18147562 |
Provision For Civil [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Estimated financial effect of contingent liabilities | 1,292,202 | 1,101,332 |
Provision For Labor [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Estimated financial effect of contingent liabilities | 392,035 | 340,801 |
Provision For Tax [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Estimated financial effect of contingent liabilities | 16,309,439 | 16,586,353 |
Provision For Regulatory [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Estimated financial effect of contingent liabilities | R$ 146880 | R$ 119076 |
The main actions with risk of l
The main actions with risk of loss classified as possible are described below: (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
IfrsStatementLineItems [Line Items] | ||
Total | R$ 18140556 | R$ 18147562 |
Provision For Civil [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Total | 1,292,202 | 1,101,332 |
Provision For Civil [Member] | Civil Contingent Liability 1 [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Total | 160,696 | 220,347 |
Provision For Civil [Member] | Civil Contingent Liability 2 [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Total | 258,683 | 223,066 |
Provision For Civil [Member] | Civil Contingent Liability 3 [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Total | 493,806 | 160,279 |
Provision For Civil [Member] | Civil Contingent Liability 4 [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Total | 216,054 | 193,529 |
Provision For Civil [Member] | Civil Contingent Liability 5 [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Total | 99,743 | 154,187 |
Provision For Civil [Member] | Other contingent liabilities [member] | ||
IfrsStatementLineItems [Line Items] | ||
Total | R$ 63220 | R$ 149924 |
Tax (Details)
Tax (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
IfrsStatementLineItems [Line Items] | ||
Total | R$ 18140556 | R$ 18147562 |
Provision For Tax [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Total | 16,309,439 | 16,586,353 |
Provision For Tax [Member] | Fst Funttel And Ebc [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Total | 3,266,381 | 3,014,976 |
Provision For Tax [Member] | Federal Taxes [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Total | 3,026,326 | 4,268,212 |
Provision For Tax [Member] | State Taxes [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Total | 8,782,114 | 8,562,352 |
Provision For Tax [Member] | Municipal Taxes [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Total | R$ 1234618 | R$ 740813 |
Provision for legal and admin_3
Provision for legal and administrative proceedings (Details Narrative) R$ in Thousands | 1 Months Ended | 12 Months Ended | ||
Aug. 22, 2019BRL (R$) | Dec. 31, 2021BRL (R$)Number | Dec. 31, 2020BRL (R$)Number | Dec. 31, 2019BRL (R$)Number | |
IfrsStatementLineItems [Line Items] | ||||
Estimated financial effect of contingent liabilities | R$ 18140556 | R$ 18147562 | ||
Provision amounts | 960,881 | 886,947 | R$ 703522 | |
Labor Contingent Liability 2 [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Estimated financial effect of contingent liabilities | 150,881 | 139,429 | ||
Civil Proceedings P R O C O N [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Estimated financial effect of contingent liabilities | 116,985 | 51,713 | ||
Civil Proceedings Former Trade Partners [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Estimated financial effect of contingent liabilities | 20,708 | 18,634 | ||
Civil Proceedings Others [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Estimated financial effect of contingent liabilities | 20,089 | 33,682 | ||
Civil Proceedings Social Environmental And Infrastructure [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Estimated financial effect of contingent liabilities | R$ 356 | 610 | ||
Civil Proceedings A N A T E L [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Estimated financial effect of contingent liabilities | 1,364 | |||
Labor Proceedings Former Employees [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Number of labour claims | Number | 1,314 | 1,873 | ||
Tax Contingent Liability 27 [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Estimated financial effect of contingent liabilities | R$ 192132 | 213,026 | ||
Tax Contingent Liability 1 [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Estimated financial effect of contingent liabilities | 3,026,326 | 4,268,212 | ||
Provision amounts | 8,510 | 8,355 | ||
Tax Contingent Liability 4 [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Provision amounts | 15,149 | 14,771 | ||
Tax Contingent Liability One [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Provision amounts | R$ 39554 | 38,584 | ||
Percentage of provision | 11.00% | |||
Tax Contingent Liability Two [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Provision amounts | R$ 60382 | 58,988 | ||
Tax Contingent Liability 2 [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Estimated financial effect of contingent liabilities | 8,782,114 | 8,562,352 | ||
Provision amounts | 41,352 | 36,491 | ||
Revenue from rendering of telecommunication services | 5,291 | 5,135 | ||
[custom:ClaimsAndLegalProccedingsForInputOutputOfGoods] | 16,216 | 15,751 | ||
Gratuitous loan | 16,374 | 14,912 | ||
Credits Related To Tax Substitution | 22,183 | |||
Discount offered | 1,140,553 | 1,128,741 | ||
Employee benefits | 356,251 | 492,935 | ||
Acquisition of electricity | 138,242 | 136,286 | ||
Tax Contingent Liability 44 [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Cancellation of telecommunications | 29,779 | 29,201 | ||
Social Security [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Payment of social security contributions | 23,786 | 10,467 | ||
Unadjusted bonuses, hiring bonuses and incentives | 85,720 | 22,829 | ||
Tax adjustment amount | 12,133,168 | 11,976,959 | ||
Labor Contingent Liability 1 [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Estimated financial effect of contingent liabilities | R$ 306315 | R$ 317971 | ||
Number of labour claims | Number | 3,067 | 3,038 | ||
Tax Contingent Liability 5 [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Estimated financial effect of contingent liabilities | R$ 1467409 | R$ 2715670 | ||
Tax Contingent Liability 6 [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Estimated financial effect of contingent liabilities | 231,810 | 193,181 | ||
Tax Contingent Liability 7 [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Estimated financial effect of contingent liabilities | 69,124 | 67,572 | ||
Tax Contingent Liability 8 [Member] | T I M Celular S A [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Estimated financial effect of contingent liabilities | 268,170 | 259,088 | ||
Tax Contingent Liability 99 [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Estimated financial effect of contingent liabilities | 410,662 | 399,691 | ||
Tax Contingent Liability 12 [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Estimated financial effect of contingent liabilities | 654,011 | 608,316 | ||
Tax Contingent Liability 13 [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Estimated financial effect of contingent liabilities | 3,449,439 | 3,356,501 | ||
Tax Contingent Liability 17 [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Estimated financial effect of contingent liabilities | 727,057 | 698,673 | ||
Tax Contingent Liability 18 [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Estimated financial effect of contingent liabilities | 547,575 | 249,271 | ||
Tax Contingent Liability 20 [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Estimated financial effect of contingent liabilities | 116,700 | 197,521 | ||
Tax Claim State Taxes Collection Of I C M S Tax On Subscription Services [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Estimated financial effect of contingent liabilities | 286,519 | 260,447 | ||
Tax Contingent Liability 3 [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Estimated financial effect of contingent liabilities | 1,234,618 | 740,813 | ||
Tax Contingent Liability 22 [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Estimated financial effect of contingent liabilities | 618,343 | 150,023 | ||
Tax Contingent Liability 23 [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Estimated financial effect of contingent liabilities | 399,141 | 385,536 | ||
Tax Contingent Liability 25 [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Estimated financial effect of contingent liabilities | 137,944 | 126,159 | ||
Tax Contingent Liability 26 [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Estimated financial effect of contingent liabilities | 3,266,381 | 3,014,976 | ||
Regulatory Contingent Liability [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Estimated financial effect of contingent liabilities | R$ 120218 | R$ 119076 | ||
Civil Contingent Liability 2 [Member] | Board Of Directors [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Nominal amount | R$ 627000 | |||
Description of additional commitment | additional commitment to bring mobile broadband, through the 4G network, to 366 municipalities with less than 30 thousand inhabitants thus reaching more than 3.4 million people. | |||
Description of infrastruce implemented | The new infrastructure will be implemented in three years - more than 80% in the first two years – being guaranteed by the company the sharing regime with the other providers. |
Schedule of reserves (Details)
Schedule of reserves (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Capital reserves | R$ 401806 | R$ 397183 |
Special Reserve of goodwill | 353,604 | 353,604 |
Long-term incentive plan | R$ 48202 | R$ 43579 |
Schedule of dividends calculati
Schedule of dividends calculation (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Profit for the year | R$ 2957174 | R$ 1828254 | R$ 3622127 |
(-) non-distributable tax incentives | (176,741) | (169,540) | |
(-) Constitution of legal reserve | (139,021) | (83,707) | |
Adjusted Net Profit | 2,641,412 | 1,575,007 | |
Minimum dividends calculated on the basis of 25% of adjusted profit | 660,353 | 397,752 | |
Interest on shareholders' equity | 1,047,500 | 1,083,000 | |
Total dividends and interest on shareholders' equity distributed and proposed | 1,047,500 | 1,083,000 | |
Withholding income tax (IRRF) on interest on shareholders' equity | (142,977) | (162,450) | |
Total dividends and interest on shareholders’ equity, net | R$ 904523 | R$ 920550 |
During 2021, the amount of R$ 1
During 2021, the amount of R$ 1,047,500 (Details) R$ in Thousands | Dec. 31, 2021BRL (R$) |
Other equity interest [member] | |
IfrsStatementLineItems [Line Items] | |
Interest on shareholders equity | R$ 350000 |
Appproval date | Jun. 9, 2021 |
Payment date | Jul. 20, 2021 |
Other Equity Interest One [Member] | |
IfrsStatementLineItems [Line Items] | |
Interest on shareholders equity | R$ 137500 |
Appproval date | Sep. 24, 2021 |
Payment date | Oct. 27, 2021 |
Other Equity Interest Two [Member] | |
IfrsStatementLineItems [Line Items] | |
Interest on shareholders equity | R$ 560000 |
Appproval date | Dec. 15, 2021 |
Payment date | Jan. 25, 2022 |
Shareholders' equity (Details N
Shareholders' equity (Details Narrative) - BRL (R$) | Jul. 02, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Jul. 31, 2020 | Jul. 29, 2020 |
IfrsStatementLineItems [Line Items] | |||||
Number of share issued | 2,420,804,398 | 2,420,804,398 | |||
Number of shares authorised | 42,296,789,606 | 4,450,000,000 | 422,967,896 | 357,379 | |
Reverse split ratio | 100 | ||||
Description of increase share capital | the amount of R$ 1,719defined in the incorporation protocol was approved at an ordinary and Extraordinary General Meeting, which was represented by R$ 13,477,891 | ||||
Description of legal reserve percentage | It refers to the allocation of 5% of the net profit for the year ended December 31 of each year, until the Reserve equals 20% of the share capital, excluding from 2018 the balance allocated to the reserve of tax incentives. In addition, the company may cease to constitute the legal reserve when this, added to the capital reserves, exceeds 30% of the share capital. | ||||
Accumulated amount of benefits | R$ 1958301 | R$ 1781560 | |||
Mandatory dividend percentage | 25.00% | ||||
Dividend payables | R$ 533580000 | 538,576,000 | |||
Unpaid return on equity | 49,955 | R$ 43026 | |||
Other Equity Interest Three [Member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Dividend payables | 533,580 | ||||
Other equity interest [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Addition amount paid | R$ 483625000 |
Schedule of variations in quant
Schedule of variations in quantity of options (Details) | 12 Months Ended | ||
Dec. 31, 2021BRL (R$)shares | Dec. 31, 2021BRL (R$)$ / shares | Dec. 31, 2020BRL (R$) | |
IfrsStatementLineItems [Line Items] | |||
Share options granted | R$ 6008258000 | R$ 6008258000 | |
Weighted average price of the balance of grants | $ / shares | R$ 8.10 | ||
Balance at the beginning of the period | R$ 316834000 | ||
Granted in the period | shares | |||
Exercised in the period | shares | (204,282,000) | ||
Exercised during the year | shares | |||
Falling due in the period | shares | |||
[custom:ShareBaseOptionsOutstanding-2] | R$ 112552000 | ||
Date of grant | Total | ||
Balance at the beginning of the period | R$ 1683543000 | R$ 1683543000 | |
Transferred during the year, volume vested | (601,476,000) | ||
Transferred during the year, performance change | (172,599,000) | ||
Transferred during the year, additional dividends | (54,435,000) | ||
Paid in cash, volume vested | (9,101,000) | ||
Paid in cash, performance change | (2,305,000) | ||
Paid in cash, additional dividends | (1,094,000) | ||
Canceled during the year | (438,714,000) | ||
Performance And Restricted Shares [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Weighted average price of the balance of grants | $ / shares | R$ 12.96 | ||
Ranges Of Exercise Prices For Outstanding Share Options 1 [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Share options granted | R$ 3922204000 | R$ 3922204000 | |
ExpiryDateOfStockOptionProgram | Nov 2022 | Nov 2022 | |
Weighted average price of the balance of grants | $ / shares | R$ 8.10 | ||
Balance at the beginning of the period | R$ 295063000 | ||
Granted in the period | shares | |||
Exercised in the period | shares | (182,511,000) | ||
Exercised during the year | shares | |||
Falling due in the period | shares | |||
[custom:ShareBaseOptionsOutstanding-2] | R$ 112552000 | ||
Date of grant | 2016 Grant | ||
Ranges Of Exercise Prices For Outstanding Share Options 2 [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Share options granted | R$ 3355229000 | R$ 3355229000 | |
ExpiryDateOfStockOptionProgram | Oct 2021 | Oct 2021 | |
Weighted average price of the balance of grants | $ / shares | R$ 8.45 | ||
Balance at the beginning of the period | R$ 21771000 | ||
Granted in the period | shares | |||
Exercised in the period | shares | (21,771,000) | ||
Exercised during the year | shares | |||
Falling due in the period | shares | |||
[custom:ShareBaseOptionsOutstanding-2] | R$ 0 | ||
Date of grant | 2015 Grant | ||
Ranges Of Exercise Prices For Outstanding Share Options 3 [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Share options granted | R$ 1687686000 | R$ 1687686000 | |
ExpiryDateOfStockOptionProgram | Sep 2020 | Sep 2020 | |
Weighted average price of the balance of grants | $ / shares | R$ 13.42 | ||
Granted in the period | shares | |||
Exercised in the period | shares | |||
Exercised during the year | shares | |||
Falling due in the period | shares | |||
Ranges Of Exercise Prices For Outstanding Share Options 34 [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Share options granted | R$ 3072418000 | R$ 3072418000 | |
ExpiryDateOfStockOptionProgram | July 2019 | July 2019 | |
Weighted average price of the balance of grants | $ / shares | R$ 8.13 | ||
Granted in the period | shares | |||
Date of grant | 2014 Grant | ||
Ranges Of Exercise Prices For Outstanding Share Options 4 [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Exercised in the period | shares | |||
Exercised during the year | shares | |||
Falling due in the period | shares | |||
Ranges Of Exercise Prices For Outstanding Share Options 5 [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Share options granted | R$ 2661752000 | R$ 2661752000 | |
ExpiryDateOfStockOptionProgram | Sep 2018 | Sep 2018 | |
Weighted average price of the balance of grants | $ / shares | R$ 8.96 | ||
Granted in the period | shares | |||
Falling due in the period | shares | |||
Date of grant | 2012 Grant | ||
Ranges Of Exercise Prices For Outstanding Share Options 6 [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Share options granted | R$ 2833595000 | R$ 2833595000 | |
ExpiryDateOfStockOptionProgram | Aug 2017 | Aug 2017 | |
Weighted average price of the balance of grants | $ / shares | R$ 8.84 | ||
Granted in the period | shares | |||
Date of grant | 2011 Grant | ||
Ranges Of Exercise Prices For Outstanding Share Options Zero 0 [Member] | |||
IfrsStatementLineItems [Line Items] | |||
ExpiryDateOfStockOptionProgram | May 2024 | May 2024 | |
Weighted average price of the balance of grants | $ / shares | R$ 12.95 | ||
Date of grant | 2021-2023 Plan 2021 Grant(s) | ||
Ranges Of Exercise Prices For Outstanding Share Options One 0 [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Share options granted | R$ 3431610000 | R$ 3431610000 | |
Granted in the period | shares | 3,431,610,000 | ||
Balance at the beginning of the period | R$ 3119734000 | 3,119,734,000 | |
Transferred during the year, volume vested | |||
Transferred during the year, performance change | |||
Transferred during the year, additional dividends | |||
Paid in cash, volume vested | |||
Paid in cash, performance change | |||
Paid in cash, additional dividends | |||
Canceled during the year | (311,876,000) | ||
Ranges Of Exercise Prices For Outstanding Share Options One 1 [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Share options granted | R$ 796054000 | R$ 796054000 | |
ExpiryDateOfStockOptionProgram | Apr 2023 | Apr 2023 | |
Weighted average price of the balance of grants | $ / shares | R$ 14.40 | ||
Granted in the period | shares | |||
Date of grant | 2018-2020 Plan 2020 Grant(s) | ||
Balance at the beginning of the period | R$ 519098 | R$ 519098 | 796,054 |
Transferred during the year, volume vested | (206,578) | ||
Transferred during the year, performance change | (51,634) | ||
Transferred during the year, additional dividends | (8,933) | ||
Paid in cash, volume vested | |||
Paid in cash, performance change | |||
Paid in cash, additional dividends | |||
Canceled during the year | R$ 70378 | ||
Ranges Of Exercise Prices For Outstanding Share Options Two 2 [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Date of grant | 2018-2020 Plan 2019 Grant(s) | ||
Ranges Of Exercise Prices For Outstanding Share Options Two 1 [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Share options granted | R$ 930662000 | R$ 930662000 | |
ExpiryDateOfStockOptionProgram | July 2022 | July 2022 | |
Weighted average price of the balance of grants | $ / shares | R$ 11.28 | ||
Granted in the period | shares | |||
Balance at the beginning of the period | R$ 427030 | R$ 427030 | 687,895 |
Transferred during the year, volume vested | (207,859) | ||
Transferred during the year, performance change | (78,111) | ||
Transferred during the year, additional dividends | (23,252) | ||
Paid in cash, volume vested | |||
Paid in cash, performance change | |||
Paid in cash, additional dividends | |||
Canceled during the year | R$ 53006 | ||
Ranges Of Exercise Prices For Outstanding Share Options Three 3 [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Date of grant | 2018-2020 Plan 2018 Grant* | ||
Ranges Of Exercise Prices For Outstanding Share Options Three 1 [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Share options granted | R$ 849932000 | R$ 849932000 | |
ExpiryDateOfStockOptionProgram | Apr 2021 | Apr 2021 | |
Weighted average price of the balance of grants | $ / shares | R$ 14.41 | ||
Granted in the period | shares | |||
Balance at the beginning of the period | R$ 199594 | ||
Transferred during the year, volume vested | (187,039) | ||
Transferred during the year, performance change | (42,854) | ||
Transferred during the year, additional dividends | (22,250) | ||
Paid in cash, volume vested | (9,101) | ||
Paid in cash, performance change | (2,305) | ||
Paid in cash, additional dividends | (1,094) | ||
Canceled during the year | R$ 3454 | ||
Ranges Of Exercise Prices For Outstanding Share Options 7 [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Granted in the period | shares | 3,431,610 | ||
Ranges Of Exercise Prices For Outstanding Share Options Three 7 [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Balance at the beginning of the period | R$ 4065862000 | R$ 4065862000 |
Schedule of significant data in
Schedule of significant data included in model (Details) | 12 Months Ended |
Dec. 31, 2021$ / shares | |
IfrsStatementLineItems [Line Items] | |
Grant date | Total |
Base price - weighted average share in the period of measurement of the grant | $ 8.10 |
Ranges Of Exercise Prices For Outstanding Share Options 6 [Member] | |
IfrsStatementLineItems [Line Items] | |
Grant date | 2011 Grant |
Base price - weighted average share in the period of measurement of the grant | $ 8.84 |
Volatility | 51.73% |
Expected useful life of the option | 6 years |
Ranges Of Exercise Prices For Outstanding Share Options 6 [Member] | Significant interest rate benchmarks subject to interest rate benchmark reform [member] | |
IfrsStatementLineItems [Line Items] | |
Annual interest rate without risk | 11.94% |
Ranges Of Exercise Prices For Outstanding Share Options 6 [Member] | Ranges Of Exercise Prices For Outstanding Share Options 1 [Member] | |
IfrsStatementLineItems [Line Items] | |
Annual interest rate without risk | 11.73% |
Ranges Of Exercise Prices For Outstanding Share Options 5 [Member] | |
IfrsStatementLineItems [Line Items] | |
Grant date | 2012 Grant |
Base price - weighted average share in the period of measurement of the grant | $ 8.96 |
Volatility | 50.46% |
Expected useful life of the option | 6 years |
Ranges Of Exercise Prices For Outstanding Share Options 8 [Member] | Significant interest rate benchmarks subject to interest rate benchmark reform [member] | |
IfrsStatementLineItems [Line Items] | |
Annual interest rate without risk | 8.89% |
Ranges Of Exercise Prices For Outstanding Share Options 23 [Member] | |
IfrsStatementLineItems [Line Items] | |
Grant date | 2013 Grant |
Base price - weighted average share in the period of measurement of the grant | $ 8.13 |
Volatility | 48.45% |
Expected useful life of the option | 6 years |
Ranges Of Exercise Prices For Outstanding Share Options 23 [Member] | Significant interest rate benchmarks subject to interest rate benchmark reform [member] | |
IfrsStatementLineItems [Line Items] | |
Annual interest rate without risk | 10.66% |
Ranges Of Exercise Prices For Outstanding Share Options 34 [Member] | |
IfrsStatementLineItems [Line Items] | |
Grant date | 2014 Grant |
Base price - weighted average share in the period of measurement of the grant | $ 8.13 |
Ranges Of Exercise Prices For Outstanding Share Options Six [Member] | |
IfrsStatementLineItems [Line Items] | |
Base price - weighted average share in the period of measurement of the grant | $ 13.42 |
Volatility | 44.60% |
Expected useful life of the option | 6 years |
Ranges Of Exercise Prices For Outstanding Share Options Six [Member] | Significant interest rate benchmarks subject to interest rate benchmark reform [member] | |
IfrsStatementLineItems [Line Items] | |
Annual interest rate without risk | 10.66% |
Ranges Of Exercise Prices For Outstanding Share Options 2 [Member] | |
IfrsStatementLineItems [Line Items] | |
Grant date | 2015 Grant |
Base price - weighted average share in the period of measurement of the grant | $ 8.45 |
Volatility | 35.50% |
Expected useful life of the option | 6 years |
Ranges Of Exercise Prices For Outstanding Share Options 2 [Member] | Significant interest rate benchmarks subject to interest rate benchmark reform [member] | |
IfrsStatementLineItems [Line Items] | |
Annual interest rate without risk | 16.10% |
Ranges Of Exercise Prices For Outstanding Share Options 1 [Member] | |
IfrsStatementLineItems [Line Items] | |
Grant date | 2016 Grant |
Base price - weighted average share in the period of measurement of the grant | $ 8.10 |
Volatility | 36.70% |
Expected useful life of the option | 6 years |
Long-Term Incentive Plan (Detai
Long-Term Incentive Plan (Details Narrative) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Expenses related to long term benefit plan | R$ 22212 | R$ 9999 |
Schedule of revenue (Details)
Schedule of revenue (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
IfrsStatementLineItems [Line Items] | |||
Net revenue | R$ 18058027 | R$ 17267812 | R$ 17377194 |
Gross revenue | 25,357,429 | 24,346,101 | 25,182,831 |
Service revenue | 24,264,246 | 23,279,423 | 23,820,343 |
Goods sold | 1,093,183 | 1,066,678 | 1,362,488 |
Deductions from gross revenue | (7,299,402) | (7,078,289) | (7,805,637) |
Taxes incidents | (4,679,722) | (4,534,582) | (4,939,980) |
Discounts granted | (2,610,388) | (2,531,920) | (2,843,670) |
Returns and other | (9,292) | (11,787) | (21,987) |
Mobile [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Service revenue-Mobile | 22,433,225 | 21,522,135 | 22,145,033 |
Landline [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Service revenue - Landline | R$ 1831021 | R$ 1757288 | R$ 1675310 |
Schedule of operating cost and
Schedule of operating cost and expences (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
IfrsStatementLineItems [Line Items] | |||
Cost of services provided and products sold | R$ 8443023 | R$ 7996615 | R$ 7433731 |
Marketing expenses | (4,621,788) | 4,443,027 | |
General and administrative expenses | 1,723,384 | 1,673,290 | 1,717,859 |
Total | 5,858,973 | 6,468,171 | 5,428,606 |
Marketing expenses | 4,621,788 | (4,443,027) | |
Cost of services provided and products sold | 8,443,023 | 7,996,615 | 7,433,731 |
General and administrative expenses | (1,723,384) | (1,673,290) | (1,717,859) |
Total | (5,858,973) | (6,468,171) | (5,428,606) |
[custom:CostOfSales1] | (7,433,731) | ||
[custom:SalesAndMarketingExpense1] | (4,986,289) | ||
[custom:AdministrativeExpense1] | 1,717,859 | ||
[custom:OperatingExpense1] | 14,137,879 | ||
Personnel [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Cost of services provided and products sold | 62,214 | 58,024 | 53,392 |
Marketing expenses | 676,479 | (632,231) | 624,353 |
General and administrative expenses | 387,735 | 321,967 | 392,984 |
Total | 1,126,428 | 1,012,222 | 1,070,729 |
Marketing expenses | (676,479) | 632,231 | (624,353) |
Cost of services provided and products sold | (62,214) | (58,024) | (53,392) |
General and administrative expenses | (387,735) | (321,967) | (392,984) |
Total | (1,126,428) | (1,012,222) | (1,070,729) |
Third Party Services [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Cost of services provided and products sold | 560,039 | 587,835 | 569,242 |
Marketing expenses | 1,763,360 | 1,743,644 | 2,041,646 |
General and administrative expenses | 668,641 | 538,584 | 512,643 |
Total | 2,992,040 | 2,870,063 | 3,123,531 |
Marketing expenses | (1,763,360) | (1,743,644) | (2,041,646) |
Cost of services provided and products sold | (560,039) | (587,835) | (569,242) |
General and administrative expenses | (668,641) | (538,584) | (512,643) |
Total | (2,992,040) | (2,870,063) | (3,123,531) |
Interconnection And Means Of Connection [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Cost of services provided and products sold | 1,840,139 | 1,672,655 | 1,419,464 |
Marketing expenses | |||
General and administrative expenses | |||
Total | 1,840,139 | 1,672,655 | 1,419,464 |
Marketing expenses | |||
Cost of services provided and products sold | (1,840,139) | (1,672,655) | (1,419,464) |
General and administrative expenses | |||
Total | (1,840,139) | (1,672,655) | (1,419,464) |
Depreciation And Amortization [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Cost of services provided and products sold | 4,847,995 | 4,569,064 | 4,132,223 |
Marketing expenses | 265,565 | 247,666 | 256,898 |
General and administrative expenses | 578,136 | 710,282 | 739,860 |
Total | 5,691,696 | 5,527,012 | 5,128,981 |
Marketing expenses | (265,565) | (247,666) | (256,898) |
Cost of services provided and products sold | (4,847,995) | (4,569,064) | (4,132,223) |
General and administrative expenses | (578,136) | (710,282) | (739,860) |
Total | (5,691,696) | (5,527,012) | (5,128,981) |
Taxes Fees And Contributions Operating Expense [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Cost of services provided and products sold | 34,732 | 28,675 | 32,120 |
Marketing expenses | 777,819 | 761,152 | 817,369 |
General and administrative expenses | 29,388 | 23,809 | 18,846 |
Total | 841,939 | 813,636 | 868,335 |
Marketing expenses | (777,819) | (761,152) | (817,369) |
Cost of services provided and products sold | (34,732) | (28,675) | (32,120) |
General and administrative expenses | (29,388) | (23,809) | (18,846) |
Total | (841,939) | (813,636) | (868,335) |
Rent And Insurance Operating Expense [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Cost of services provided and products sold | 362,171 | 316,650 | 291,302 |
Marketing expenses | 109,781 | 107,550 | 121,795 |
General and administrative expenses | 20,082 | 15,753 | 20,590 |
Total | 492,034 | 439,953 | 433,687 |
Marketing expenses | (109,781) | (107,550) | (121,795) |
Cost of services provided and products sold | (362,171) | (316,650) | (291,302) |
General and administrative expenses | (20,082) | (15,753) | (20,590) |
Total | (492,034) | (439,953) | (433,687) |
Cost Of Goods Sold Operating Expense [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Cost of services provided and products sold | 731,007 | 756,060 | 931,818 |
Marketing expenses | |||
General and administrative expenses | |||
Total | 731,007 | 756,060 | 931,818 |
Marketing expenses | |||
Cost of services provided and products sold | (731,007) | (756,060) | (931,818) |
General and administrative expenses | |||
Total | (731,007) | (756,060) | (931,818) |
Publicity And Advertising Operating Expense [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Cost of services provided and products sold | |||
Marketing expenses | 459,811 | 377,184 | 355,234 |
General and administrative expenses | |||
Total | 459,811 | 377,184 | 355,234 |
Marketing expenses | (459,811) | (377,184) | (355,234) |
Cost of services provided and products sold | |||
General and administrative expenses | |||
Total | (459,811) | (377,184) | (355,234) |
Losses On Doubtful Accounts Operating Expense [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Cost of services provided and products sold | |||
Marketing expenses | 544,642 | 552,817 | 748,291 |
General and administrative expenses | |||
Total | 544,642 | 552,817 | 748,291 |
Marketing expenses | (544,642) | (552,817) | (748,291) |
Cost of services provided and products sold | |||
General and administrative expenses | |||
Total | (544,642) | (552,817) | (748,291) |
Others [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Cost of services provided and products sold | 4,726 | 7,652 | 4,170 |
Marketing expenses | 24,331 | 20,783 | 20,703 |
General and administrative expenses | 39,402 | 62,895 | 32,936 |
Total | 68,459 | 91,330 | 57,809 |
Marketing expenses | (24,331) | (20,783) | (20,703) |
Cost of services provided and products sold | (4,726) | (7,652) | (4,170) |
General and administrative expenses | (39,402) | (62,895) | (32,936) |
Total | R$ 68459 | R$ 91330 | R$ 57809 |
Revenue (Details Narrative)
Revenue (Details Narrative) | 12 Months Ended |
Dec. 31, 2021BRL (R$) | |
Revenue from services | R$ 119457 |
Schedule of other income (expen
Schedule of other income (expenses) (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income | |||
Income from grant, net | R$ 13548 | R$ 17427 | R$ 21572 |
Fines on telecommunications services | 58,793 | 37,490 | 50,499 |
Revenue on disposal of assets (ii) | 2,711,535 | 5,375 | 2,214 |
PIS/COFINS credits (i) | 1,795,000 | ||
Other income | 65,482 | 68,651 | 83,558 |
Total Revenue | 2,849,358 | 128,943 | 1,952,843 |
Expenses | |||
FUST/FUNTTEL (iii) | (134,962) | (133,378) | (137,169) |
Taxes, fees and contributions | (2,274) | (10,316) | (4,024) |
Provision for legal and administrative proceedings, net of reversal | (248,987) | (290,789) | (466,460) |
Expense on disposal of assets (ii) | (1,942,791) | (13,538) | (7,055) |
Other expenses | (22,573) | (32,776) | (62,593) |
Total Expenses | (2,351,587) | (480,797) | (677,301) |
Other income (expenses), net | R$ 497771 | R$ 351854 | R$ 1275542 |
Schedule of financial income (D
Schedule of financial income (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Financial income | R$ 1091748 | R$ 438598 | R$ 1430171 | |
Interest on financial investments | 339,681 | 82,512 | 88,224 | |
Interest received from clients | 28,427 | 28,686 | 37,233 | |
Swap interest | 203,852 | 32,955 | 15,536 | |
Interest on lease | 24,788 | 19,924 | 20,528 | |
Inflation adjustment | [1] | 208,029 | 116,441 | 1,263,793 |
Other derivatives | [2] | 285,009 | 155,165 | |
Other income | R$ 1962 | R$ 2915 | R$ 4857 | |
[1] | A substantial part is related to the monetary restatement on judicial and administrative proceedings and judicial deposits. | |||
[2] | It is the difference between the market cost and value of the share subscription option related to Banco C6 partnership; therefore, the mark-to-market value of these derivatives includes a gain of R$ 285 million referring to the company’s stock option obtained through achievement of contractual target defined in an operational partnership started in 2020. The market value was calculated based on information available in the last investment transaction carried out by the partner and disclosed in the market. The disclosures of this derivative financial instrument are detailed in note 37, which was measured at fair value, and will subsequently be measured in the Company’s income, also considering the risks related to arbitration disclosed in note 27. |
Schedule of financial expenses
Schedule of financial expenses (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Financial expenses | R$ 1745213 | R$ 1242255 | R$ 1408053 | |
Interest on loans and financing | 99,183 | 70,400 | 116,735 | |
Interest on taxes and fees | (61,745) | (43,616) | (28,396) | |
Swap interest | (352,029) | (45,970) | (24,604) | |
Interest on lease | (845,033) | (766,263) | (821,463) | |
Inflation adjustment | [1] | (247,200) | (161,892) | (191,309) |
Discounts granted | (52,509) | (33,725) | (36,047) | |
Other expenses | (87,514) | R$ 120389 | R$ 189499 | |
Substantial part related to inflation adjustment | R$ 137379 | |||
[1] | Substantial portion related to the inflation adjustment of lawsuits, in the amount of R$ 111,949 - see note 24 (R$ |
Schedule of foreign exchange va
Schedule of foreign exchange variations (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
IfrsStatementLineItems [Line Items] | ||||
Income | R$ 520928 | R$ 364148 | R$ 88192 | |
Expenses | (520,269) | (371,113) | (89,100) | |
Foreign exchange variations | 659 | (6,965) | (908) | |
Borrowing And Financing [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Income | [1] | 215,262 | 22,494 | |
Expenses | [1] | (275,724) | (305,010) | (40,715) |
Suppliers [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Income | 13,190 | 15,981 | 9,004 | |
Expenses | (20,061) | (46,112) | (13,201) | |
Swap contract [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Income | [2] | 275,836 | 305,012 | 40,742 |
Expenses | [2] | (215,262) | (22,493) | |
Other Exchange Variations [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Income | 16,640 | 43,155 | 15,952 | |
Expenses | R$ 9222 | R$ 19991 | R$ 12691 | |
[1] | It mainly refers to foreign exchange variation on loans and financing in foreign currency. | |||
[2] | Referring to derivative financial instruments to mitigate risks of foreign exchange variations related to foreign currency debts (note 37). |
Schedule of income tax and soci
Schedule of income tax and social contribution (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Current income tax and social contribution | |||
Income tax for the period | R$ 9697 | R$ 684099 | R$ 155521 |
Social contribution for the period | 26,538 | (232,671) | (58,905) |
Tax incentive – SUDENE/SUDAM (i) | 167,118 | 164,442 | 156,594 |
Current income tax | 203,353 | (752,328) | (57,832) |
Deferred income tax and social contribution | |||
Deferred income tax | (255,972) | 453,127 | (625,516) |
Deferred social contribution | (93,432) | 144,722 | (225,186) |
Deferred income tax | (349,404) | 597,849 | (850,702) |
Provision for income tax and social contribution contingencies | (9,671) | (5,406) | |
Deferred income tax, net of tax | (349,404) | 588,178 | (856,108) |
Income tax and social contribution | R$ 146051 | R$ 164150 | R$ 913940 |
The reconciliation of income ta
The reconciliation of income tax expense and social contribution calculated by applying the combined tax rates with the values reflected in the result is shown below: (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Income before income tax and social contribution | R$ 3103225 | R$ 1992404 | R$ 4536067 | |
Combined statutory rate | 34.00% | 34.00% | 34.00% | |
Combined tax rate on income tax and social contribution | R$ 1055097 | R$ 677417 | R$ 1542263 | |
Permanent additions and exclusions: | ||||
Non-taxable revenues | 135,465 | 11,370 | 7,790 | |
Non-deductible expenses for tax purposes | (53,505) | (42,329) | (18,748) | |
Tax incentive – SUDENE/SUDAM | [1] | 167,118 | 164,442 | 194,161 |
Tax benefit related to interest on shareholders’ equity | 356,150 | 368,220 | 338,449 | |
Sale I – Systems (formerly FiberCo) | [2] | (335,935) | ||
IR/CS credit on Selic related do tax overpayment | [3] | 534,804 | ||
Reversal of Provision for IR/CS - TIM Nordeste | [4] | 87,565 | ||
Other amounts | 17,384 | 11,564 | 106,670 | |
Income before income tax | 909,046 | 513,267 | 628,322 | |
Income tax and social contribution recorded in income for the period | R$ 146051 | R$ 164150 | R$ 913941 | |
Effective rate | 4.71% | 8.24% | 20.15% | |
[1] | As mentioned in note 25 c.3, in order for investment grants not to be computed in taxable income, they must be recorded as a tax incentive reserve, which can only be used to absorb losses or be incorporated into the share capital. TIM S.A. has tax benefits that fall under these rules. | |||
[2] | Refers to deferred taxes on goodwill written-off, according to the sale transaction described in Note 1, which took place in November 2021 between TIM S.A. and IHS. See note 15.d. | |||
[3] | As mentioned in note 9, in September 2021, the Federal Supreme Court (STF), with general repercussions, established an understanding for the non-levy of Corporate Income Tax (IRPJ) and Social Contribution (CSLL) on the monetary restatement using the SELIC rate in cases of undue payment. Although the aforementioned decision is still pending publication, as well as the specific TIM lawsuit is still pending judgment, TIM recorded its best estimate to date, in the amount of R$ 534 million, since the likelihood of a favorable outcome for the Company becomes probable. | |||
[4] | In the second quarter of 2021, there was a positive impact of R$ 87 million arising from the write-off of assets and reversal of the provision for income tax and social contribution, set up in 2009, due to the partial success in an administrative proceeding related to the merger of the company TIM Nordeste by TIM Celular. |
Basic earnings per share are ca
Basic earnings per share are calculated by dividing profit attributable to Company’s shareholders by the weighted average number of shares issued during the year. (Details) R$ in Thousands | 12 Months Ended | |||||
Dec. 31, 2021BRL (R$)shares | Dec. 31, 2021$ / shares | Dec. 31, 2020BRL (R$)shares | Dec. 31, 2020$ / shares | Dec. 31, 2019BRL (R$)shares | Dec. 31, 2019$ / shares | |
Profit for the year | R$ | R$ 2957174 | R$ 1828254 | R$ 3622127 | |||
Weighted average number of common shares issued (thousands) | shares | 2,420,314 | 2,420,804 | 2,420,481 | |||
Basic earnings per share (expressed in R$) | $ / shares | $ 1.22 | $ 0.76 | $ 1.50 | |||
Income attributable to the shareholders of the company | R$ | R$ 2957174 | R$ 1828254 | R$ 3622127 | |||
Weighted average number of common shares issued (thousands) | shares | 2,420,638 | 2,421,065 | 2,421,018 | |||
Diluted earnings per share (in R$) | $ / shares | $ 1.22 | $ 0.76 | $ 1.50 |
Earnings per share (Details Nar
Earnings per share (Details Narrative) | 12 Months Ended |
Dec. 31, 2021shares | |
Number of shares as result of corporate reorganization | 2,420,447,019 |
The balances of transactions wi
The balances of transactions with Telecom Italia Group companies are as follows: (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
IfrsStatementLineItems [Line Items] | |||
Total assets | R$ 121235 | R$ 10718 | |
Total liabilities | 148,953 | 127,386 | |
Total revenue | 10,693 | 8,250 | R$ 8198 |
Total costs/expenses | 406,702 | 389,012 | 421,219 |
Advertising expense with related parties | 143,439 | 195,117 | |
Telecom Italia Sparkle [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Total assets | 1,414 | 1,630 | |
Total liabilities | 3,689 | 10,576 | |
Total revenue | 353 | 2,994 | 5,371 |
Total costs/expenses | 19,219 | 27,485 | 24,914 |
Grupo Havas [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Total assets | 83,613 | ||
Total liabilities | 19,794 | 24,068 | |
Total costs/expenses | 206,349 | 207,682 | 264,318 |
T I Sparkle [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Total assets | 5,084 | 1,915 | |
Total liabilities | 10,205 | 7,333 | |
Total revenue | 3,347 | 4,059 | 2,052 |
Total costs/expenses | 20,533 | 19,923 | 18,700 |
T I M Brasil [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Total assets | 23,069 | 6,129 | |
Total liabilities | 6,558 | 6,145 | |
Telecom Italia S P A [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Total assets | 1,502 | 370 | |
Total liabilities | 71,288 | 75,317 | |
Total revenue | 1,112 | 1,197 | 775 |
Total costs/expenses | 105,137 | 110,407 | 93,188 |
I Systems [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Total assets | 5,879 | ||
Total liabilities | 31,596 | ||
Total revenue | 5,881 | ||
Total costs/expenses | 31,596 | ||
Other related parties [member] | |||
IfrsStatementLineItems [Line Items] | |||
Total assets | 674 | 674 | |
Total liabilities | 4,585 | 2,797 | |
Total costs/expenses | 22,597 | 22,308 | 18,713 |
Vivendi Group [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Total liabilities | 1,238 | 1,150 | |
Total costs/expenses | R$ 1271 | R$ 1207 | R$ 1386 |
Balances and transactions wit_3
Balances and transactions with related parties (Details Narrative) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Social benefits | R$ 9147 | R$ 4829 |
The payment of key management p
The payment of key management personnel for the provision of their services is presented below: (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Short-term benefits | R$ 31494 | R$ 23949 | R$ 22524 |
Other long-term benefits | 1,052 | 4,544 | 900 |
Share-based payments remuneration | 15,176 | 6,343 | 5,379 |
Total compensation | R$ 47722 | R$ 34836 | R$ 28803 |
The consolidated derivative fin
The consolidated derivative financial instruments are presented below: (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
IfrsStatementLineItems [Line Items] | ||
Derivatives financial instruments | R$ 198027 | R$ 340660 |
Derivatives financial instruments | 208,787 | 36,166 |
Other derivatives | 457,892 | 161,429 |
Other derivatives | ||
Derivatives | 655,919 | 502,089 |
Derivatives | 208,787 | 36,166 |
Current installment | (134,292) | (262,666) |
Current installment | (194,837) | (7,273) |
Derivative financial instruments | 521,627 | 239,423 |
Non-current installment | R$ 13950 | 28,893 |
Percentage of share capital | 4.08% | |
Financial instrument measured at fair value | R$ 17700000 | |
Banco [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Financial instrument measured at fair value | 458,000 | R$ 161000 |
Difference in the fair value | R$ 440300000 |
The long-term derivative financ
The long-term derivative financial instruments on December 31, 2021 are due in accordance with the following schedule: (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
IfrsStatementLineItems [Line Items] | ||
Derivative financial instruments | R$ 521627 | R$ 239423 |
Later than two years and not later than three years [member] | ||
IfrsStatementLineItems [Line Items] | ||
Derivative financial instruments | 39,335 | |
Later than three months and not later than four months [member] | ||
IfrsStatementLineItems [Line Items] | ||
Derivative financial instruments | 16,843 | |
Later than four months [member] | ||
IfrsStatementLineItems [Line Items] | ||
Derivative financial instruments | R$ 465449 |
Financial instruments measured
Financial instruments measured at fair value: (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
IfrsStatementLineItems [Line Items] | ||
Total assets | R$ 5235447 | R$ 2579588 |
Financial assets at fair value | 5,235,447 | 2,579,588 |
Derivative financial instruments | 198,027 | 340,660 |
Other derivatives | 457,892 | 161,429 |
Marketable securities | 4,579,528 | 2,077,499 |
Total liabilities | 208,787 | 36,166 |
Financial liabilities at fair value through profit or loss | 208,787 | 36,166 |
Derivatives used for hedging | 208,787 | 36,166 |
Level 1 of fair value hierarchy [member] | ||
IfrsStatementLineItems [Line Items] | ||
Total assets | 4,579,528 | 2,077,499 |
Financial assets at fair value | 4,579,528 | 2,077,499 |
Derivative financial instruments | ||
Other derivatives | ||
Marketable securities | 4,579,528 | 2,077,499 |
Total liabilities | ||
Financial liabilities at fair value through profit or loss | ||
Derivatives used for hedging | ||
Level 2 of fair value hierarchy [member] | ||
IfrsStatementLineItems [Line Items] | ||
Total assets | 655,919 | 502,089 |
Financial assets at fair value | 655,919 | 502,089 |
Derivative financial instruments | 198,027 | 340,660 |
Other derivatives | 457,892 | 161,429 |
Marketable securities | ||
Total liabilities | 208,787 | 36,166 |
Financial liabilities at fair value through profit or loss | 208,787 | 36,166 |
Derivatives used for hedging | R$ 208787 | R$ 36166 |
The financial instruments of th
The financial instruments of the company by category can be summarized as follows: (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
IfrsStatementLineItems [Line Items] | ||
Assets, per balance sheet | R$ 14707824 | R$ 9336399 |
Derivative financial instruments | 655,919 | 502,089 |
[custom:DerivativeFinancialAssetsTotal-0] | 198,027 | |
Other derivatives | 457,892 | 161,429 |
Trade accounts receivable and other accounts receivable excluding prepayments | 3,253,207 | 3,180,661 |
[custom:TradeReceivablesTotal-0] | 3,253,207 | |
Marketable securities | 4,579,528 | 2,077,499 |
Cash and cash equivalents | 5,228,615 | 2,575,291 |
Leases | 243,121 | 162,198 |
Judicial deposits | 718,773 | 794,755 |
Regulatory credits recoverable | 28,661 | 43,906 |
Liabilities, according to the balance sheet | 16,304,589 | 14,427,341 |
Loans and financing | 3,845,465 | 2,345,032 |
Derivative financial instruments | 208,787 | 36,166 |
[custom:DerivativeFinancialLiabilitiesTotal-0] | 208,787 | |
Suppliers and other obligations, excluding legal obligations | 2,653,218 | 3,128,732 |
Leases | 9,063,539 | |
Dividends and interest on shareholders' equity payable | 533,580 | 538,576 |
Derivative financial instruments | 198,027 | 340,660 |
Borrowings total | 2,345,032 | |
Leases | 1,952,178 | 1,661,822 |
[custom:FinanceLeaseLiabilitiesTotal-0] | 8,378,835 | |
Financial liabilities at amortised cost, category [member] | ||
IfrsStatementLineItems [Line Items] | ||
Liabilities, according to the balance sheet | 16,095,802 | 14,391,175 |
Loans and financing | 3,845,465 | 2,345,032 |
Derivative financial instruments | ||
Suppliers and other obligations, excluding legal obligations | 2,653,218 | 3,128,732 |
Leases | 9,063,539 | |
Dividends and interest on shareholders' equity payable | 533,580 | 538,576 |
Leases | 8,378,835 | |
Financial liabilities at fair value through profit or loss, category [member] | ||
IfrsStatementLineItems [Line Items] | ||
Liabilities, according to the balance sheet | 208,787 | 36,166 |
Loans and financing | ||
Derivative financial instruments | 208,787 | 36,166 |
Suppliers and other obligations, excluding legal obligations | ||
Leases | ||
Dividends and interest on shareholders' equity payable | ||
Leases | ||
Financial assets at amortised cost, category [member] | ||
IfrsStatementLineItems [Line Items] | ||
Assets, per balance sheet | 9,472,377 | 6,756,811 |
Trade accounts receivable and other accounts receivable excluding prepayments | 3,253,207 | 3,180,661 |
Marketable securities | ||
Cash and cash equivalents | 5,228,615 | 2,575,291 |
Leases | 243,121 | 162,198 |
Judicial deposits | 718,773 | 794,755 |
Regulatory credits recoverable | 28,661 | 43,906 |
Derivative financial instruments | ||
Financial assets at fair value through profit or loss, category [member] | ||
IfrsStatementLineItems [Line Items] | ||
Assets, per balance sheet | 5,235,447 | 2,579,588 |
Derivative financial instruments | 198,027 | |
Other derivatives | 457,892 | 161,429 |
Trade accounts receivable and other accounts receivable excluding prepayments | ||
Marketable securities | R$ 4579528 | 2,077,499 |
Derivative financial instruments | R$ 340660 |
The operations with derivative
The operations with derivative financial instruments contracted by the company and in force on December 31, 2021 and December 31, 2020 are shown in the following table: (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Derivative Financial Instruments 1 [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Currency | USD | USD |
Type of SWAP | LIBOR x DI | LIBOR x DI |
COUNTERPARTY, SWAP | JP Morgan and Bank of America | JP Morgan and Bank of America |
Total Debt | R$ 282474 | R$ 351233 |
Total swap (Long position) | R$ 282474 | R$ 351233 |
% Coverage | 100.00% | 100.00% |
AVERAGE SWAP RATES, Long position | LIBOR 6M + 0.75% p.a. | LIBOR 6M + 0.75% p.a. |
AVERAGE SWAP RATES, Short position | 85.25% | |
COUNTERPARTY, Debt | KFW/ | |
Derivative Financial Instruments 1 [Member] | Bottom of range [member] | ||
IfrsStatementLineItems [Line Items] | ||
AVERAGE SWAP RATES, Short position | 79.00% | |
Derivative Financial Instruments 1 [Member] | Top of range [member] | ||
IfrsStatementLineItems [Line Items] | ||
AVERAGE SWAP RATES, Short position | 92.59% | |
Derivative Financial Instruments 2 [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Currency | USD | EUR |
Type of SWAP | PRE x DI | PRE x DI |
COUNTERPARTY, SWAP | BNP Paribas | Bank of America |
Total Debt | R$ 428793 | R$ 570878 |
Total swap (Long position) | R$ 429247 | R$ 570878 |
% Coverage | 100.00% | 100.00% |
AVERAGE SWAP RATES, Long position | 3.32% p.a. | 0.33% p.a. |
AVERAGE SWAP RATES, Short position | 155.00% | 108.05% |
COUNTERPARTY, Debt | BNP Paribas | Bank of America |
Derivative Financial Instruments 3 [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Currency | USD | USD |
Type of SWAP | PRE x DI | PRE x DI |
COUNTERPARTY, SWAP | Scotiabank | Scotiabank |
Total Debt | R$ 559650 | R$ 1031526 |
Total swap (Long position) | R$ 559933 | R$ 1031526 |
% Coverage | 100.00% | 100.00% |
AVERAGE SWAP RATES, Long position | 1.73% p.a. | 1.72% p.a. |
AVERAGE SWAP RATES, Short position | 1.05% | 134.43% |
COUNTERPARTY, Debt | The Bank of Nova Scotia | The Bank of Nova Scotia. |
Derivative Financial Instruments 4 [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Currency | BRL | USD |
Type of SWAP | PRE x DI | PRE x DI |
COUNTERPARTY, SWAP | BNP Paribas | BNP Paribas |
Total Debt | R$ 515166 | R$ 399725 |
Total swap (Long position) | R$ 517843 | R$ 399725 |
% Coverage | 100.00% | 100.00% |
AVERAGE SWAP RATES, Long position | 8.34% p.a. | 3.32% p.a. |
AVERAGE SWAP RATES, Short position | 1.07% | 155.00% |
COUNTERPARTY, Debt | BNP Paribas | BNP Paribas |
Derivative Financial Instruments 5 [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Currency | BRL | |
Type of SWAP | IPCA x DI | |
COUNTERPARTY, SWAP | ITAU | |
Total Debt | R$ 1696999 | |
Total swap (Long position) | R$ 1696999 | |
% Coverage | 100.00% | |
AVERAGE SWAP RATES, Long position | IPCA + 4.17% p.a. | |
AVERAGE SWAP RATES, Short position | 0.95% | |
COUNTERPARTY, Debt | DEBENTURE | |
Derivative Financial Instruments 6 [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Currency | BRL | |
Type of SWAP | IPCA x DI | |
COUNTERPARTY, SWAP | XP | |
Total Debt | R$ 396281 | |
Total swap (Long position) | R$ 396281 | |
% Coverage | 100.00% | |
AVERAGE SWAP RATES, Long position | IPCA + 4.23% p.a. | |
AVERAGE SWAP RATES, Short position | 96.95% | |
COUNTERPARTY, Debt | BNDES |
Our assumptions basically obser
Our assumptions basically observed the individual effect of the CDI, USD, Libor and IPCA variation used in the transactions as the case may be, and for each scenario the following percentages and quotes were used: (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
IfrsStatementLineItems [Line Items] | ||
Fair value (Cisco and KFW) | R$ 2252479 | |
Probable Scenario [Member] | U S D Sensitivity Scenario [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Fair value (Cisco and KFW) | R$ 3390406 | |
Fair value of the long position of swap | 3,390,406 | |
Fair value of the short position of swap | (3,401,372) | |
Income (loss) from swap | (10,966) | |
Probable Scenario [Member] | Scenario Sensitivity To Libor [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Fair value (Cisco and KFW) | 3,390,406 | |
Fair value of the long position of swap | 3,390,406 | |
Fair value of the short position of swap | (3,401,372) | |
Income (loss) from swap | (10,966) | |
Probable Scenario [Member] | E U R Sensitivity Scenario [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Fair value of the short position of swap | (3,401,372) | |
Income (loss) from swap | (10,966) | |
Probable Scenario [Member] | I P C A Sensitivity Scenario [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Fair value (Cisco and KFW) | 3,390,406 | |
Fair value of the long position of swap | 3,390,406 | |
Possible Scenario [Member] | U S D Sensitivity Scenario [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Fair value (Cisco and KFW) | 3,709,499 | |
Fair value of the long position of swap | 3,709,499 | |
Fair value of the short position of swap | (3,401,372) | |
Income (loss) from swap | 308,127 | |
Accumulated variation in debt | 319,094 | |
Accumulated variation in swap | 319,094 | |
Possible Scenario [Member] | Scenario Sensitivity To Libor [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Fair value (Cisco and KFW) | 3,391,542 | |
Fair value of the long position of swap | 3,391,542 | |
Fair value of the short position of swap | (3,401,372) | |
Income (loss) from swap | (123,716) | |
Accumulated variation in debt | 1,136 | |
Accumulated variation in swap | (112,750) | |
Possible Scenario [Member] | E U R Sensitivity Scenario [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Income (loss) from swap | (9,830) | |
Accumulated variation in swap | 1,136 | |
Possible Scenario [Member] | I P C A Sensitivity Scenario [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Fair value (Cisco and KFW) | 3,277,656 | |
Fair value of the long position of swap | 3,277,656 | |
Accumulated variation in debt | (112,750) | |
Remote Scenario [Member] | U S D Sensitivity Scenario [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Fair value (Cisco and KFW) | 4,028,593 | |
Fair value of the long position of swap | 4,028,593 | |
Fair value of the short position of swap | (3,401,372) | |
Income (loss) from swap | 627,221 | |
Accumulated variation in debt | 638,187 | |
Accumulated variation in swap | 638,187 | |
Remote Scenario [Member] | Scenario Sensitivity To Libor [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Fair value (Cisco and KFW) | 3,392,677 | |
Fair value of the long position of swap | 3,392,677 | |
Fair value of the short position of swap | (3,401,372) | |
Income (loss) from swap | (228,368) | |
Accumulated variation in debt | 2,271 | |
Accumulated variation in swap | (217,402) | |
Remote Scenario [Member] | E U R Sensitivity Scenario [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Fair value of the short position of swap | (3,401,372) | |
Income (loss) from swap | (8,695) | |
Accumulated variation in swap | 2,271 | |
Remote Scenario [Member] | I P C A Sensitivity Scenario [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Fair value (Cisco and KFW) | 3,173,004 | |
Fair value of the long position of swap | 3,173,004 | |
Fair value of the short position of swap | (3,401,372) | |
Accumulated variation in debt | (217,402) | |
C D I Sensitivity Scenario [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Fair value (Cisco and KFW) | 3,390,406 | |
Fair value of the long position of swap | 3,390,406 | |
Fair value of the short position of swap | (3,401,372) | |
Income (loss) from swap | (10,966) | |
C D I Sensitivity Scenario [Member] | Probable Scenario [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Fair value (Cisco and KFW) | 3,390,406 | |
Fair value of the long position of swap | 3,390,406 | |
Fair value of the short position of swap | (3,401,372) | |
Income (loss) from swap | (10,966) | |
C D I Sensitivity Scenario [Member] | Possible Scenario [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Fair value (Cisco and KFW) | 3,388,105 | |
Fair value of the long position of swap | 3,388,105 | |
Fair value of the short position of swap | (3,428,742) | |
Income (loss) from swap | (40,637) | |
Accumulated variation in debt | (2,301) | |
Accumulated variation in swap | (29,671) | |
Final result | (27,370) | |
C D I Sensitivity Scenario [Member] | Remote Scenario [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Fair value (Cisco and KFW) | 3,385,955 | |
Fair value of the long position of swap | 3,385,955 | |
Fair value of the short position of swap | (3,455,013) | |
Income (loss) from swap | (69,058) | |
Accumulated variation in debt | (4,451) | |
Accumulated variation in swap | (58,093) | |
Final result | R$ 53641 |
Schedule of risk variable of de
Schedule of risk variable of derivative financial instruments (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Probable Scenario [Member] | London Interbank Offered Rate 4 [Member] | U S D Sensitivity Scenario [Member] | |
IfrsStatementLineItems [Line Items] | |
Interest rate variable risk | 34.33% |
C D I Sensitivity Scenario 1 [Member] | Probable Scenario [Member] | Interbank Deposit Certificate [Member] | |
IfrsStatementLineItems [Line Items] | |
Interest rate variable risk | 9.15% |
U S D Sensitivity Scenario 1 [Member] | Probable Scenario [Member] | United States Dollars [Member] | |
IfrsStatementLineItems [Line Items] | |
Interest rate variable risk | 5.5805% |
C D I Sensitivity Scenario [Member] | Probable Scenario [Member] | London Interbank Offered Rate 1 [Member] | |
IfrsStatementLineItems [Line Items] | |
Interest rate variable risk | 0.3433% |
C D I Sensitivity Scenario [Member] | Probable Scenario [Member] | I P C A Sensitivity Scenario 1 [Member] | |
IfrsStatementLineItems [Line Items] | |
Interest rate variable risk | 10.06% |
C D I Sensitivity Scenario [Member] | Probable Scenario [Member] | I P C A Sensitivity Scenario 4 [Member] | |
IfrsStatementLineItems [Line Items] | |
Interest rate variable risk | 10.06% |
C D I Sensitivity Scenario [Member] | Probable Scenario [Member] | London Interbank Offered Rate 5 [Member] | |
IfrsStatementLineItems [Line Items] | |
Interest rate variable risk | 0.3433% |
C D I Sensitivity Scenario [Member] | Probable Scenario [Member] | I P C A Sensitivity Scenario 5 [Member] | |
IfrsStatementLineItems [Line Items] | |
Interest rate variable risk | 10.06% |
C D I Sensitivity Scenario [Member] | Probable Scenario [Member] | London Interbank Offered Rate 6 [Member] | |
IfrsStatementLineItems [Line Items] | |
Interest rate variable risk | 0.3433% |
C D I Sensitivity Scenario [Member] | Probable Scenario [Member] | I P C A Sensitivity Scenario 6 [Member] | |
IfrsStatementLineItems [Line Items] | |
Interest rate variable risk | 10.06% |
C D I Sensitivity Scenario [Member] | Probable Scenario [Member] | London Interbank Offered Rate 7 [Member] | |
IfrsStatementLineItems [Line Items] | |
Interest rate variable risk | 0.3433% |
C D I Sensitivity Scenario [Member] | Probable Scenario [Member] | I P C A Sensitivity Scenario 7 [Member] | |
IfrsStatementLineItems [Line Items] | |
Interest rate variable risk | 10.06% |
C D I Sensitivity Scenario [Member] | Probable Scenario [Member] | London Interbank Offered Rate 8 [Member] | |
IfrsStatementLineItems [Line Items] | |
Interest rate variable risk | 0.4291% |
C D I Sensitivity Scenario [Member] | Probable Scenario [Member] | I P C A Sensitivity Scenario 8 [Member] | |
IfrsStatementLineItems [Line Items] | |
Interest rate variable risk | 10.06% |
C D I Sensitivity Scenario [Member] | Probable Scenario [Member] | London Interbank Offered Rate 9 [Member] | |
IfrsStatementLineItems [Line Items] | |
Interest rate variable risk | 0.5149% |
C D I Sensitivity Scenario [Member] | Probable Scenario [Member] | I P C A Sensitivity Scenario 9 [Member] | |
IfrsStatementLineItems [Line Items] | |
Interest rate variable risk | 10.06% |
C D I Sensitivity Scenario [Member] | Probable Scenario [Member] | London Interbank Offered Rate 10 [Member] | |
IfrsStatementLineItems [Line Items] | |
Interest rate variable risk | 0.3433% |
C D I Sensitivity Scenario [Member] | Probable Scenario [Member] | I P C A Sensitivity Scenario 10 [Member] | |
IfrsStatementLineItems [Line Items] | |
Interest rate variable risk | 10.06% |
C D I Sensitivity Scenario [Member] | Probable Scenario [Member] | London Interbank Offered Rate 11 [Member] | |
IfrsStatementLineItems [Line Items] | |
Interest rate variable risk | 0.3433% |
C D I Sensitivity Scenario [Member] | Probable Scenario [Member] | I P C A Sensitivity Scenario 11 [Member] | |
IfrsStatementLineItems [Line Items] | |
Interest rate variable risk | 12.58% |
C D I Sensitivity Scenario [Member] | Probable Scenario [Member] | London Interbank Offered Rate 12 [Member] | |
IfrsStatementLineItems [Line Items] | |
Interest rate variable risk | 0.3433% |
C D I Sensitivity Scenario [Member] | Probable Scenario [Member] | I P C A Sensitivity Scenario 12 [Member] | |
IfrsStatementLineItems [Line Items] | |
Interest rate variable risk | 15.09% |
C D I Sensitivity Scenario [Member] | Possible Scenario [Member] | London Interbank Offered Rate 2 [Member] | |
IfrsStatementLineItems [Line Items] | |
Interest rate variable risk | 0.3433% |
C D I Sensitivity Scenario [Member] | Possible Scenario [Member] | I P C A Sensitivity Scenario 2 [Member] | |
IfrsStatementLineItems [Line Items] | |
Interest rate variable risk | 10.06% |
C D I Sensitivity Scenario [Member] | Remote Scenario [Member] | London Interbank Offered Rate 3 [Member] | |
IfrsStatementLineItems [Line Items] | |
Interest rate variable risk | 0.3433% |
C D I Sensitivity Scenario [Member] | Remote Scenario [Member] | I P C A Sensitivity Scenario 3 [Member] | |
IfrsStatementLineItems [Line Items] | |
Interest rate variable risk | 10.06% |
C D I Sensitivity Scenario 2 [Member] | Possible Scenario [Member] | Interbank Deposit Certificate [Member] | |
IfrsStatementLineItems [Line Items] | |
Interest rate variable risk | 11.44% |
U S D Sensitivity Scenario 2 [Member] | Probable Scenario [Member] | United States Dollars [Member] | |
IfrsStatementLineItems [Line Items] | |
Interest rate variable risk | 5.5805% |
C D I Sensitivity Scenario 3 [Member] | Remote Scenario [Member] | Interbank Deposit Certificate [Member] | |
IfrsStatementLineItems [Line Items] | |
Interest rate variable risk | 13.73% |
U S D Sensitivity Scenario 3 [Member] | Probable Scenario [Member] | United States Dollars [Member] | |
IfrsStatementLineItems [Line Items] | |
Interest rate variable risk | 5.5805% |
C D I Sensitivity Scenario 4 [Member] | Probable Scenario [Member] | Interbank Deposit Certificate [Member] | |
IfrsStatementLineItems [Line Items] | |
Interest rate variable risk | 9.15% |
U S D Sensitivity Scenario 4 [Member] | Probable Scenario [Member] | United States Dollars [Member] | |
IfrsStatementLineItems [Line Items] | |
Interest rate variable risk | 5.5805% |
C D I Sensitivity Scenario 5 [Member] | Possible Scenario [Member] | Interbank Deposit Certificate [Member] | |
IfrsStatementLineItems [Line Items] | |
Interest rate variable risk | 9.15% |
U S D Sensitivity Scenario 5 [Member] | Probable Scenario [Member] | United States Dollars [Member] | |
IfrsStatementLineItems [Line Items] | |
Interest rate variable risk | 6.321% |
C D I Sensitivity Scenario 6 [Member] | Remote Scenario [Member] | Interbank Deposit Certificate [Member] | |
IfrsStatementLineItems [Line Items] | |
Interest rate variable risk | 9.15% |
U S D Sensitivity Scenario 6 [Member] | Probable Scenario [Member] | United States Dollars [Member] | |
IfrsStatementLineItems [Line Items] | |
Interest rate variable risk | 8.3708% |
C D I Sensitivity Scenario 7 [Member] | Probable Scenario [Member] | Interbank Deposit Certificate [Member] | |
IfrsStatementLineItems [Line Items] | |
Interest rate variable risk | 9.15% |
U S D Sensitivity Scenario 7 [Member] | Probable Scenario [Member] | United States Dollars [Member] | |
IfrsStatementLineItems [Line Items] | |
Interest rate variable risk | 5.5805% |
C D I Sensitivity Scenario 8 [Member] | Possible Scenario [Member] | Interbank Deposit Certificate [Member] | |
IfrsStatementLineItems [Line Items] | |
Interest rate variable risk | 9.15% |
U S D Sensitivity Scenario 8 [Member] | Probable Scenario [Member] | United States Dollars [Member] | |
IfrsStatementLineItems [Line Items] | |
Interest rate variable risk | 5.5805% |
C D I Sensitivity Scenario 9 [Member] | Remote Scenario [Member] | Interbank Deposit Certificate [Member] | |
IfrsStatementLineItems [Line Items] | |
Interest rate variable risk | 9.15% |
U S D Sensitivity Scenario 9 [Member] | Probable Scenario [Member] | United States Dollars [Member] | |
IfrsStatementLineItems [Line Items] | |
Interest rate variable risk | 5.5805% |
C D I Sensitivity Scenario 10 [Member] | Probable Scenario [Member] | Interbank Deposit Certificate [Member] | |
IfrsStatementLineItems [Line Items] | |
Interest rate variable risk | 9.15% |
U S D Sensitivity Scenario 10 [Member] | Probable Scenario [Member] | United States Dollars [Member] | |
IfrsStatementLineItems [Line Items] | |
Interest rate variable risk | 5.5805% |
C D I Sensitivity Scenario 11 [Member] | Possible Scenario [Member] | Interbank Deposit Certificate [Member] | |
IfrsStatementLineItems [Line Items] | |
Interest rate variable risk | 9.15% |
U S D Sensitivity Scenario 11 [Member] | Probable Scenario [Member] | United States Dollars [Member] | |
IfrsStatementLineItems [Line Items] | |
Interest rate variable risk | 5.5805% |
C D I Sensitivity Scenario 12 [Member] | Remote Scenario [Member] | Interbank Deposit Certificate [Member] | |
IfrsStatementLineItems [Line Items] | |
Interest rate variable risk | 9.15% |
U S D Sensitivity Scenario 12 [Member] | Probable Scenario [Member] | United States Dollars [Member] | |
IfrsStatementLineItems [Line Items] | |
Interest rate variable risk | 5.5805% |
Schedule of capital management
Schedule of capital management (Details) R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2021BRL (R$) | Dec. 31, 2020BRL (R$) | Dec. 31, 2019BRL (R$) | ||
Net income (loss) from derivative operations | R$ 87603 | R$ 290856 | ||
Income (loss) from operations with other derivatives | 285,009 | 155,165 | ||
Total loans and derivatives (notes 19 and 36) | 3,398,333 | 1,879,109 | ||
Lease - Liabilities (note 15) | 9,063,539 | 8,378,835 | ||
Lease - Assets (note 15) | (243,121) | (162,198) | ||
Less: Cash and cash equivalents (note 4) | (5,228,615) | (2,575,291) | ||
FIC (note 5) | (4,568,020) | (2,070,438) | ||
Net debt | 2,422,116 | 5,450,017 | ||
Other derivatives (note 36) | 457,892 | 161,429 | ||
Financing of 5G lincense | 843,020 | |||
Adjusted net debt | 3,723,028 | 5,611,447 | ||
EBITDA | [1] | R$ 9459299 | R$ 8330038 | |
Leverage ratio | 0.0039 | 0.0065 | ||
Profit for the year | R$ 2957174 | R$ 1828254 | R$ 3622127 | |
Depreciation and amortization | 5,691,696 | 5,527,012 | ||
Financial Income (Expenses) | (652,806) | (810,622) | 21,210 | |
Income tax and social contribution | 146,051 | 164,150 | R$ 913940 | |
Equity in investment | R$ 11572 | |||
[1] | Adjusted EBITDA: Presentation of Adjusted EBITDA as a non-GAAP measure is useful to management, investors and other users of our financial information in evaluating operating profitability of the Company. Adjusted EBITDA is calculated by adding back financial income (expenses), income tax and social contribution, depreciation and amortization cost and expense, and share of loss of an associate to profit for the year. |
Changes in financial liabilitie
Changes in financial liabilities (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Loans And Financing [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Beginning balance | R$ 2345032 | R$ 2029088 |
Inflows | 3,062,000 | 1,800,000 |
Cancellation | ||
Financial expenses | 167,857 | 90,500 |
Foreign exchange variations, net | 60,463 | 305,010 |
Payment | (1,789,887) | (1,879,566) |
Ending balance | 3,845,465 | 2,345,032 |
Remeasurement | ||
Leases [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Beginning balance | 8,378,835 | 7,780,870 |
Inflows | 2,041,474 | 1,966,355 |
Cancellation | (202,379) | |
Financial expenses | 858,260 | 797,569 |
Foreign exchange variations, net | ||
Payment | (2,012,651) | (1,722,293) |
Ending balance | 9,063,539 | 8,378,835 |
Remeasurement | (443,666) | |
Derivative Financial Instruments Assets Liabilitie [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Beginning balance | (465,922) | (42,106) |
Inflows | (296,464) | (161,429) |
Cancellation | ||
Financial expenses | 148,177 | 13,016 |
Foreign exchange variations, net | (60,574) | (305,012) |
Payment | 227,651 | 29,610 |
Ending balance | R$ 447132 | (465,922) |
Remeasurement |
Schedule of asset policy and me
Schedule of asset policy and medical plan (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
IfrsStatementLineItems [Line Items] | ||
Defined benefit pension plans and other post-employment benefits | R$ 22212 | R$ 9999 |
P A M E C Asset Policy And Medical Plan [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Defined benefit pension plans and other post-employment benefits | R$ 6492 | R$ 7346 |
The actuarial position of liabi
The actuarial position of liabilities and assets related to retirement and health care plans, on December 31, 2020, in accordance with the rules provided for by IAS 19 is presented below. (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
IfrsStatementLineItems [Line Items] | ||
Present value of the actuarial obligations | R$ 66167 | R$ 69362 |
Fair value of the plan assets | (83,133) | (80,856) |
Present value of the obligations exceeding the fair value of the assets | (16,966) | (11,494) |
Amount recognized in other comprehensive income | 2,495 | 2,023 |
Net actuarial liabilities/(assets) | (14,471) | |
[custom:LiabilityAssetOfDefinedBenefitPlans1-0] | (9,471) | |
P B S [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Present value of the actuarial obligations | 38,869 | |
Fair value of the plan assets | (56,478) | |
Present value of the obligations exceeding the fair value of the assets | (17,609) | |
Amount recognized in other comprehensive income | ||
Net actuarial liabilities/(assets) | (17,609) | |
[custom:LiabilityAssetOfDefinedBenefitPlans1-0] | (17,609) | (15,731) |
P B S Assisted [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Present value of the actuarial obligations | 9,176 | |
Fair value of the plan assets | (14,739) | |
Present value of the obligations exceeding the fair value of the assets | (5,563) | |
Amount recognized in other comprehensive income | 2,327 | |
Net actuarial liabilities/(assets) | (3,236) | |
[custom:LiabilityAssetOfDefinedBenefitPlans1-0] | (3,236) | (1,360) |
Administration Agreement [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Present value of the actuarial obligations | 119 | |
Fair value of the plan assets | (405) | |
Present value of the obligations exceeding the fair value of the assets | (286) | |
Amount recognized in other comprehensive income | 168 | |
Net actuarial liabilities/(assets) | (118) | |
[custom:LiabilityAssetOfDefinedBenefitPlans1-0] | (118) | (287) |
P A M E C Asset Policy [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Present value of the actuarial obligations | 672 | |
Fair value of the plan assets | ||
Present value of the obligations exceeding the fair value of the assets | 672 | |
Amount recognized in other comprehensive income | ||
Net actuarial liabilities/(assets) | 672 | |
[custom:LiabilityAssetOfDefinedBenefitPlans1-0] | 672 | 858 |
A E S Telecom [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Present value of the actuarial obligations | 14,100 | |
Fair value of the plan assets | (11,511) | |
Present value of the obligations exceeding the fair value of the assets | 2,589 | |
Amount recognized in other comprehensive income | ||
Net actuarial liabilities/(assets) | 2,589 | |
[custom:LiabilityAssetOfDefinedBenefitPlans1-0] | 2,589 | 2,145 |
Medical Plan [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Present value of the actuarial obligations | 3,231 | |
Fair value of the plan assets | ||
Present value of the obligations exceeding the fair value of the assets | 3,231 | |
Amount recognized in other comprehensive income | ||
Net actuarial liabilities/(assets) | 3,231 | |
[custom:LiabilityAssetOfDefinedBenefitPlans1-0] | R$ 3231 | R$ 4343 |
b) Changes in net actuarial lia
b) Changes in net actuarial liabilities (assets) (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
IfrsStatementLineItems [Line Items] | ||
Net actuarial liabilities (assets) on end | R$ 9471 | |
P B S [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Net actuarial liabilities (assets) on end | R$ 17609 | (15,731) |
Expense (revenue) recognized in income (loss) | (1,063) | |
Contributions of the sponsor | ||
Recognized actuarial (gains) or losses | (815) | |
Recognized actuarial (gains) or losses | ||
P B S Assisted [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Net actuarial liabilities (assets) on end | (3,236) | (1,360) |
Expense (revenue) recognized in income (loss) | (90) | |
Contributions of the sponsor | ||
Recognized actuarial (gains) or losses | (1,786) | |
Recognized actuarial (gains) or losses | ||
Administration Agreement [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Net actuarial liabilities (assets) on end | (118) | (287) |
Expense (revenue) recognized in income (loss) | (20) | |
Contributions of the sponsor | ||
Recognized actuarial (gains) or losses | 189 | |
P A M E C Asset Policy [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Net actuarial liabilities (assets) on end | 672 | 858 |
Expense (revenue) recognized in income (loss) | 57 | |
Contributions of the sponsor | (45) | |
Recognized actuarial (gains) or losses | (198) | |
A E S Telecom [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Net actuarial liabilities (assets) on end | 2,589 | 2,145 |
Expense (revenue) recognized in income (loss) | 160 | |
Contributions of the sponsor | ||
Recognized actuarial (gains) or losses | 284 | |
Medical Plan [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Net actuarial liabilities (assets) on end | 3,231 | R$ 4343 |
Expense (revenue) recognized in income (loss) | 535 | |
Contributions of the sponsor | (8) | |
Recognized actuarial (gains) or losses | R$ 1639 |
c) Reconciliation of present va
c) Reconciliation of present value of obligations (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
P B S [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Value of obligations on end | R$ 38869 | R$ 41852 |
Cost of current service | 17 | |
Interest on actuarial obligation | 2,743 | |
Benefits paid in the year | (2,898) | |
(Gains)/losses in obligations | (2,845) | |
P B S Assisted [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Value of obligations on end | 9,176 | 10,072 |
Cost of current service | ||
Interest on actuarial obligation | 640 | |
Benefits paid in the year | (768) | |
(Gains)/losses in obligations | (768) | |
Administration Agreement [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Value of obligations on end | 119 | 147 |
Cost of current service | ||
Interest on actuarial obligation | 10 | |
Benefits paid in the year | (9) | |
(Gains)/losses in obligations | (29) | |
P A M E C Asset Policy [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Value of obligations on end | 672 | 858 |
Cost of current service | ||
Interest on actuarial obligation | 57 | |
Benefits paid in the year | (45) | |
(Gains)/losses in obligations | (198) | |
A E S Telecom [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Value of obligations on end | 14,100 | 12,090 |
Cost of current service | ||
Interest on actuarial obligation | 868 | |
Benefits paid in the year | (605) | |
Contributions paid by participants | 0 | |
(Gains)/losses in obligations | 1,747 | |
Medical Plan [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Value of obligations on end | 3,231 | R$ 4343 |
Cost of current service | 213 | |
Interest on actuarial obligation | 322 | |
Benefits paid in the year | (8) | |
(Gains)/losses in obligations | R$ 1639 |
d) Reconciliation of the fair v
d) Reconciliation of the fair value of the assets (Details) R$ in Thousands | 12 Months Ended |
Dec. 31, 2021BRL (R$) | |
P B S [Member] | |
IfrsStatementLineItems [Line Items] | |
Fair value of assets on beginning | R$ 57479 |
Benefits paid in the year | (2,898) |
Actual earnings from assets during the year | 3,799 |
Actuarial gain (loss) on plan assets | (1,902) |
Contributions paid by participants | |
Contributions of sponsor converted in the plan | |
Fair value of assets on end | 56,478 |
P B S Assisted [Member] | |
IfrsStatementLineItems [Line Items] | |
Fair value of assets on beginning | 12,998 |
Benefits paid in the year | (768) |
Actual earnings from assets during the year | 834 |
Actuarial gain (loss) on plan assets | 1,675 |
Contributions paid by participants | |
Contributions of sponsor converted in the plan | |
Fair value of assets on end | 14,739 |
Administration Agreement [Member] | |
IfrsStatementLineItems [Line Items] | |
Fair value of assets on beginning | 434 |
Benefits paid in the year | (9) |
Actual earnings from assets during the year | 29 |
Actuarial gain (loss) on plan assets | (49) |
Contributions paid by participants | |
Contributions of sponsor converted in the plan | |
Fair value of assets on end | 405 |
P A M E C Asset Policy [Member] | |
IfrsStatementLineItems [Line Items] | |
Fair value of assets on beginning | |
Benefits paid in the year | |
Actual earnings from assets during the year | |
Actuarial gain (loss) on plan assets | |
Contributions paid by participants | |
Contributions of sponsor converted in the plan | |
Fair value of assets on end | |
A E S Telecom [Member] | |
IfrsStatementLineItems [Line Items] | |
Fair value of assets on beginning | 9,945 |
Benefits paid in the year | (605) |
Actual earnings from assets during the year | 708 |
Actuarial gain (loss) on plan assets | 1,463 |
Contributions paid by participants | |
Fair value of assets on end | 11,511 |
Medical Plan [Member] | |
IfrsStatementLineItems [Line Items] | |
Fair value of assets on beginning | |
Benefits paid in the year | |
Actual earnings from assets during the year | |
Actuarial gain (loss) on plan assets | |
Contributions paid by participants | |
Contributions of sponsor converted in the plan | |
Fair value of assets on end |
e) Expenses planned for 2022 (D
e) Expenses planned for 2022 (Details) R$ in Thousands | 12 Months Ended |
Dec. 31, 2021BRL (R$) | |
P B S [Member] | |
IfrsStatementLineItems [Line Items] | |
Current service cost (with interest) | R$ 17 |
Interest on actuarial obligations | (1,063) |
Earnings expected from assets | 3,799 |
P B S Assisted [Member] | |
IfrsStatementLineItems [Line Items] | |
Current service cost (with interest) | |
Interest on actuarial obligations | (90) |
Earnings expected from assets | 834 |
P A M E C Asset Policy [Member] | |
IfrsStatementLineItems [Line Items] | |
Current service cost (with interest) | |
Interest on actuarial obligations | 57 |
Earnings expected from assets | |
A E S Telecom [Member] | |
IfrsStatementLineItems [Line Items] | |
Current service cost (with interest) | |
Interest on actuarial obligations | 160 |
Earnings expected from assets | 708 |
Medical Plan [Member] | |
IfrsStatementLineItems [Line Items] | |
Current service cost (with interest) | 213 |
Interest on actuarial obligations | 535 |
Earnings expected from assets | |
Expenditure Planned For 2021 [Member] | P B S [Member] | |
IfrsStatementLineItems [Line Items] | |
Current service cost (with interest) | 4 |
Interest on actuarial obligations | 3,289 |
Earnings expected from assets | (4,841) |
Interest on the effect of the (asset)/liability limit | 1,552 |
Total unrecognized net expense (revenue) | 4 |
Expenditure Planned For 2021 [Member] | P B S Assisted [Member] | |
IfrsStatementLineItems [Line Items] | |
Current service cost (with interest) | |
Interest on actuarial obligations | 769 |
Earnings expected from assets | (1,257) |
Interest on the effect of the (asset)/liability limit | 284 |
Total unrecognized net expense (revenue) | (204) |
Expenditure Planned For 2021 [Member] | Managementagreement [Member] | |
IfrsStatementLineItems [Line Items] | |
Current service cost (with interest) | |
Interest on actuarial obligations | 10 |
Earnings expected from assets | (35) |
Interest on the effect of the (asset)/liability limit | 10 |
Total unrecognized net expense (revenue) | (15) |
Expenditure Planned For 2021 [Member] | P A M E C Asset Policy [Member] | |
IfrsStatementLineItems [Line Items] | |
Current service cost (with interest) | |
Interest on actuarial obligations | 57 |
Earnings expected from assets | |
Interest on the effect of the (asset)/liability limit | |
Total unrecognized net expense (revenue) | 57 |
Expenditure Planned For 2021 [Member] | A E S Telecom [Member] | |
IfrsStatementLineItems [Line Items] | |
Current service cost (with interest) | |
Interest on actuarial obligations | 1,242 |
Earnings expected from assets | (1,008) |
Interest on the effect of the (asset)/liability limit | |
Total unrecognized net expense (revenue) | 234 |
Expenditure Planned For 2021 [Member] | Medical Plan [Member] | |
IfrsStatementLineItems [Line Items] | |
Current service cost (with interest) | 121 |
Interest on actuarial obligations | 290 |
Earnings expected from assets | |
Interest on the effect of the (asset)/liability limit | |
Total unrecognized net expense (revenue) | R$ 411 |
The main actuarial assumptions
The main actuarial assumptions adopted in the calculation were as follows: (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Nominal discount rate for the actuarial obligation: | PBS South: 8.81% / 5.13%; PBS Nordeste: 8.84% / 5.16%; CA: 8.81% / 5.13%; PBS-A: 8.78% / 5.10%; AES: 9.02% / 5.33%; PAMEC: 8.81% / 5.13%; FIBER: 9.02% / 5.33% |
Salary growth rate - nominal: | PBS: 3.50%/ 0.00% CA, PBS-A, AES, PAMEC and FIBER: Not applicable |
Biometric general mortality table: | PBS, CA, PAMEC and FIBER: AT-2000 segregated per sex, decreased by 10% |
Biometric table of new disability benefit vested: | PBS and FIBER: Álvaro Vindas; CA, PBS-A, AES and PAMEC: Not applicable |
Expected turnover rate: | PBS: Null; CA, PBS-A, AES and PAMEC: Not applicable; FIBER: 0.15/ (length of service + 1), being null as of 50 years old |
Probability of retirement: | PBS and FIBER: 100% at 1st eligibility; CA, PBS-A, AES and PAMEC: Not applicable |
Estimated long-term inflation rate | PAMEC and FIBER: 6.60% / 3.00% |
Determination method | Projected Unit Credit Method |
The main assets, liabilities or
The main assets, liabilities or interests covered by insurance and their maximum indemnity limits are as follows: (Details) R$ in Thousands | 12 Months Ended |
Dec. 31, 2021BRL (R$) | |
Operating Risks [Member] | |
IfrsStatementLineItems [Line Items] | |
Amount of insured assets | R$ 550000 |
General Liability R C G [Member] | |
IfrsStatementLineItems [Line Items] | |
Amount of insured assets | 80,000 |
Cybernetic Risks Cyber [Member] | |
IfrsStatementLineItems [Line Items] | |
Amount of insured assets | R$ 30001 |
Vehicles Executive And Operational Fleets [Member] | |
IfrsStatementLineItems [Line Items] | |
Description of insured assets | 1,000 for optional civil liability (property damage and bodily harm) and R$ 100 for pain and suffering. |
Schedule of supplementary infor
Schedule of supplementary information to the cash flow (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Non-cash transactions | |||
Additions to property, plant and equipment and intangible assets - with no effect on cash | R$ 1929392 | R$ 1315151 | R$ 6653985 |
Additions to intangible assets - acquisition of licenses | R$ 2682469 |
Financial instruments and ris_3
Financial instruments and risk management (Details Narrative) - Top of range [member] - Number | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Accounts Receivables [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Concentration risk, percentage | 10.00% | |
Number of customer | 0 | 0 |
Revenues From Sale Of Goods [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Concentration risk, percentage | 10.00% | 10.00% |
Supplementary information to _3
Supplementary information to the cash flow (Details Narrative) - T I M P Participated [Member] R$ in Millions | Dec. 31, 2021BRL (R$) |
IfrsStatementLineItems [Line Items] | |
Related obligations | R$ 3584 |
[custom:CommitmentsPayable-0] | 2,682 |
Cash impac | R$ 902 |